avatar Koninklijke Vopak N.V. Finance, Insurance, And Real Estate
  • Location: ZUID-HOLLAND 
  • Founded: 1999-08-20
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    Royal Vopak Annual report 2008 Royal Vopak Annual Report 2009


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    – Key Data Revenues EUR 1,001.1 million Operating profit EUR 385.3 million * Net profit attributable to shareholders EUR 251.2 miljoen Earnings per ordinary share EUR 3.84 * Employees at year-end 3,707 Terminals 79 (in 31 countries) * Excluding exceptional items


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    – Royal Vopak Annual Report 2009 This English version of the Annual Report contains the report of the Forward-looking statements Executive Board, the financial statements and other information. This document contains statements of a forward-looking nature, based on In the event of textual inconsistencies between the English and Dutch currently available plans and forecasts. Given the dynamics of the markets versions, the first prevails. Copies of the Dutch and the English versions and the environments of the 31 countries in which Vopak renders logistic of the Annual Report can be obtained from Royal Vopak, Corporate services, the company cannot guarantee the accuracy and completeness of Communication & Investor Relations: forward-looking statements. Unforeseen circumstances include, but are not limited to, exceptional income and expense items, unexpected economic, T +31 10 400 27 78 political and foreign exchange developments, and possible changes to F +31 10 404 73 02 IFRS reporting rules. Statements of a forward-looking nature issued by the E investor.relations@vopak.com company must always be assessed in the context of the events, risks and uncertainties of the markets and environments in which Vopak operates. The Annual Report is also available on the Internet: These factors could lead to actual results being materially different from www.vopak.com those expected. – Koninklijke Vopak N.V. (Royal Vopak) Westerlaan 10, 3016 CK Rotterdam, Netherlands P.O. Box 863, 3000 AW Rotterdam, Netherlands T +31 10 400 29 11 F +31 10 413 98 29 E info@vopak.com I www.vopak.com Registered at the Company Registry of the Rotterdam Chamber of Commerce under number 24295332


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    Contents 2 Contents 114 13. Joint Ventures and associates 148 8. Remuneration of Supervisory 3 Profile 115 14. Classification of Financial Board Members and 5 Key Figures Instruments Executive Board Members 8 Letter from the Chairman of 117 15. Loans Granted 148 9. Contingent Liabilities Vopak’s Executive Board to our 118 16. Other Financial Assets Customers, Employees, 118 17. Deferred Taxes Other Information Shareholders and Partners 119 18. Other Non-current Assets 152 Contents 14 Report of the Supervisory Board 119 19. Trade and Other Receivables 153 Auditors’ Report 120 20. Cash and Cash Equivalents 154 Articles of Association Provisions Report of the Executive Board 120 21. Assets Held for Sale Governing Profit Appropriation 20 Contents 121 22. Issued Capital, Share 155 Proposed Profit Appropriation 21 Report of the Executive Board Premium and Treasury 156 Stichting Vopak 28 Growth Perspective Shares 157 Stichting Administratiekantoor 30 Corporate Social Responsibility 122 23. Other Reserves Financieringspreferente Aandelen 35 Financial Performance 123 24. Retained Earnings Vopak (‘the Foundation’) 40 The World of Vopak 123 25. Non-controlling Interests 158 Information on the Executive 42 Review by Division 123 26. Interest-bearing Loans Board Members 44 Chemicals Europe, Middle East 125 26.1 US Private Placements 159 Information on the Supervisory & Africa (CEMEA) 125 26.2 Asian Private Placements Board Members 46 Oil Europe, Middle East & Africa 126 26.3 Bank Loans and Other 161 Principal Company Officers (OEMEA) Private Placements 162 Consolidated Subsidiaries and 48 Asia 126 26.4 Credit Facilities Joint Ventures 50 North America 126 26.5 Financial Ratios 163 Five-year Consolidated Summary 52 Latin America 126 27. Pensions and Other 164 Glossary 56 Risk and Risk Management Employee Benefits 61 Directors’ Statements 130 28. Long-term Incentive Plans 62 Information for Shareholders (LTIPs) 66 Corporate Governance 133 29. Other Provisions 70 Corporate Governance Report 133 30. Trade and Other Payables 134 31. Derivative Financial 2009 Financial statements Instruments 76 Contents 138 32. Remuneration of Supervisory 77 Consolidated Financial Statements Board Members and 78 Consolidated Statement of Executive Board Members Comprehensive Income 138 32.1 Remuneration of Supervisory 79 Consolidated Statement of Board Members Financial Position at 31 December 138 32.2 Remuneration of Executive 80 Consolidated Statement of Board Members Changes in Equity 139 32.3 Performance Shares and 81 Consolidated Statement of Matching Share Plan Granted Cash Flows to Executive Board Members 82 Principles 140 32.4 Options Granted to Executive 95 Financial Risks and Risk Board Members Management 140 33. Cash Flows from Operating 102 Segment Reporting Activities (Gross) 104 Changes in Subsidiaries 141 34. Operating Lease 141 35. Investment Commitments Notes to the Consolidated Statement Undertaken of Income 141 36. Contingent Assets and 106 1. Exceptional Items Contingent Liabilities 106 2. Other Operating Income 142 37. Related Parties 106 3. Personnel Expenses 107 4. Depreciation, Amortization Company Financial Statements and Impairment 143 Company Statement of Income 107 5. Other Operating Expenses 143 Company Statement of Financial 108 6. Result of Joint Ventures and Position at 31 December Before Associates using the Equity Profit Appropriation Method 108 7. Interest and Dividend Income Notes to the Company Financial 109 8. Finance Costs Statements 109 9. Income Tax 144 1. General 109 9.1 Recognized in the Statement 144 1.1 Accounting Policies of Income 144 1.2 Participating Interests in 109 9.2 Reconciliation of Effective Group Companies Tax Rate 144 2. Participating Interests in 110 9.3 Taxes Recognized in Group Companies Comprehensive Income 144 3. Loans Granted 110 10. Earnings per Ordinary Share 145 4. Shareholders’ Equity 147 5. Interest-bearing Loans Notes to the Consolidated Statement of 147 6. Derivative Financial Financial Position Instruments 111 11. Intangible Assets 148 7. Provisions 113 12. Property, Plant and Equipment – Royal Vopak 2 Annual Report 2009


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    Profile With a history spanning almost four centuries, Vopak is the global market leader in the independent storage and handling of liquid oil products, chemicals, vegetable oils, and liquefied gases. Vopak has terminals in the world’s most strategic ports. It operates specialized facilities including product tanks, jetties, truck loading stations and pipelines, and provides access to road and rail networks. In many instances, it stores its customers’ products for extended periods at these terminals, often under highly specified conditions such as controlled temperature. The company also blends components according to desired specifications. Vopak’s terminals play a key role in product transit from the producer plant via tank terminals to end-user locations, either by ship, tank truck, railcar or pipeline. Vopak’s independent tank terminal network is responsible for a number of logistic functions in the product’s flow from producer to end-user. Vopak operates three types of terminals: 1. Import-Export-Distribution Terminal The logistical chain in bulk liquid import and export often involves transport by oceangoing vessel. For Vopak’s customers, the terminal can serve as a point of origin for inland distribution by inland shipping, pipeline, tank truck, or rail. Or alternatively it serves as collection point for small parcels, originating from an inland production facility, to create a large parcel for overseas export. 2. Hub Terminal A hub terminal combines the tasks of an import- export-distribution terminal with that of a meeting point for trade. It is, in other words, a location that provides access to a market. The Vopak network comprises hubs in the Amsterdam-Rotterdam- Antwerp (ARA) Region in Europe, Houston in the United States, Fujairah in the United Arab Emirates, Singapore in Asia and at the Bahamas. 3. Industrial Terminal The industrial terminal is a logistical center integrated via pipelines to every major petrochemical facility within an industrial complex. Within the complex, it supports product flows and the supply and export of feedstock and finished products. Vopak’s terminals help optimize the reliability and efficiency of our customers’ logistical processes. From these terminals, Vopak offers its customers - including state-run oil companies and the producers and traders of oil products and chemicals - high-quality operations worldwide. Vopak develops its services with product, market and functional requirements in mind, always in collaboration with customers and strategic partners. At present, Vopak operates 79 tank terminals in 31 countries with a total storage capacity of more than 28 million cubic meters (cbm). – Royal Vopak Annual Report 2009 3


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    The nature of the business requires a long-term investment in strategic locations, therefore Vopak invests in longterm relationships with customers, strategic partners, govern- ments, shareholders and employees. Sustainability is an integral part of Vopak’s business processes and operations. This is reflected by our consistent application and enforcement of strict standards, rules, codes and procedures such as concerning Safety, Health, Environment & Quality (SHEQ). Vopak’s standards are in keeping with the most trendsetting oil and petrochemical companies, which constitute a major part of Vopak’s customer base. The Vopak standards comply at minimum with local legislation and regulations. Vopak is organized into five divisions: – Chemicals Europe, Middle East & Africa – Oil Europe, Middle East & Africa – Asia – North America – Latin America We also have a specialized business development team for LNG (Liquefied Natural Gas). The units within our global organization work closely with one another to share their knowledge, expertise, and best practices. All of this enables Vopak to respond rapidly, creatively and correctly to changing customer needs and market developments. Vopak continually seeks to improve and expand its terminal network, particularly in strategically located ports. At year-end the Vopak workforce comprised 3,707 employees in the group companies and 1,634 employees in tank storage joint ventures. – Royal Vopak 4 Annual Report 2009


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    Key figures 2009 2008 Results (in EUR millions) Revenues 1,001.1 923.5 Group operating profit before depreciation (EBITDA) * 513.4 429.3 Group operating profit (EBIT) * 385.3 320.4 Group operating profit (EBIT) 391.1 322.2 Net profit attributable to shareholders 251.2 213.2 Net profit attributable to holders of ordinary shares 247.6 212.0 Cash flow from operating activities (net) 373.3 316.7 Investments (in EUR millions) Total investments 534.8 799.8 Average gross capital employed 3,153.0 2,572.2 Average capital employed 1,936.3 1,497.6 Capital and financing (in EUR millions) Shareholders’ equity 1,252.2 933.0 Interest-bearing loans 1,190.3 972.1 Net interest-bearing debt 1,017.7 996.7 Ratios Return on Capital Employed (ROCE) 20.2% 21.5% Return on Capital Employed (ROCE) * 20.2% 21.6% Net debt : EBITDA 2.23 2.54 Interest cover (EBITDA : net finance costs) 10.4 10.9 Key figures per ordinary share (in EUR) Earnings per ordinary share 3.92 3.40 Earnings per ordinary share * 3.84 3.24 Diluted earnings per ordinary share 3.92 3.40 Diluted earnings per ordinary share * 3.84 3.24 Company Data Number of employees at year-end in subsidiaries 3,707 3,669 Number of employees at year-end including joint ventures 5,341 5,243 Total Injury Rate subsidiaries (per million hours worked) 6.5 5.8 Lost Time Injury Rate own personnel and contractors (per million hours worked) 1.4 1.7 Number of spills 71 103 Storage capacity including joint ventures at 100% (in millions cbm) 28.3 27.1 Storage capacity subsidiaries (in millions cbm) 18.1 17.5 Occupancy (average rented storage capacity in %) 94% 95% Estimated market share global independent tank storage 11.6% 12.0% Contracts > 3 years (in % of income) 43% 39% Contracts > 1 years (in % of income) 83% 80% * Excluding exceptional items – Royal Vopak Annual Report 2009 5


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    Letter from the Chairman of Vopak’s Executive Board to Our Customers, Employees, Shareholders and Partners – Executive Board, from left to right: Frans de Koning, John Paul Broeders, Jack de Kreij A good year Financial performance 2009 was a good year for Vopak. In spite of exceptional In 2009, Vopak realized revenues of EUR 1,001.1 million, conditions prevailing in the world economy, our performance an increase of more than 8% on 2008 (EUR 923.5 million). in the year under review surpassed our expectations. This increase was caused by capacity expansions at In achieving gross Group operating profit of more than existing terminals, the construction of new terminals, and EUR 513 million, we amply exceeded our initial projection an increase in revenue per cubic meter of storage capacity. of at least EUR 450 million. We were successful in Group operating profit rose by 21% to EUR 391.1 million pursuing our strategy of customer leadership, operational (2008: EUR 322.2 million). Excluding exceptional items, efficiency leadership, and growth leadership with more Group operating profit before depreciation and vigor. In doing so, we demonstrated that our company is amortization including joint ventures and associates capable of harnessing relevant market knowledge to capture (EBITDA) climbed by 20% to reach EUR 513.4 million opportunities, even in times of great uncertainty and risk. (2008: EUR 429.3 million). We maintain close relationships with our customers, Market trends with service quality and global storage capacity expansion The market for liquid bulk products is characterized by being key factors, both now and in the future. In this a number of ongoing trends, due, among other causes, respect, too, we made good progress in the year under by an increasing imbalance between production and review. A renewed cumulative financing preference consumption locations in the world. In part, this is caused shares program and two large financing arrangements by a shift to the Middle East and Asia of the production accommodating our growth testified to the trust of oil and chemical products for exports. Other factors shareholders and external financial parties place in us. Our are the further liberalization of previously rather closed employees take pride in the success our efforts have and economies (e.g. Indonesia), the increasing need for distinct they show energy and commitment in working product specifications (e.g. gasoline) and the demand for to achieve our aspirations. environmentally friendlier fuels. – Royal Vopak 8 Annual Report 2009


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    Besides these long-term trends, we have observed a Lean, reduces all activities and hours spent that do not number of specific market conditions in the year under add value for customers. This facilitates an optimal service review. As regards oil products, there was a growing global provisioning and further growth of our company. imbalance and a growing demand for biofuels. In addition, there was a ‘contango’ situation, meaning that trading Sustainability as a profitable exercise companies built up and maintained high inventory levels in Sustainability has traditionally played an important part in anticipation of rising oil prices. Among other consequences, our business operations. For Vopak, sustainability refers, our company experienced increasing demand for oil among other things, to its attitude towards soil, air, storage services, notably at strategic (hub) terminals and water, but also its sustainable partnerships with such as Rotterdam (Netherlands), the Bahamas, Fujairah its customers. In operational terms, doing business in (United Arab Emirates), Tallinn (Estonia), and Singapore. a sustainable manner means being profitable with no incidents or waste, while minimizing nuisance caused to A noteworthy feature of the chemical sector in the past local communities and surroundings in which we operate. year was the overall fall in production, with production Based in part on the Vopak Values, we assume our facilities being shut down in Europe and North America. corporate social responsibility by providing support to the Some were moved to the Middle East, where production communities in which we have a presence. A study carried capacity came on stream. The fall in chemicals production out by the Dutch ministry of Economic Affairs acknowledged required us to demonstrate increased flexibility in allocating our aspirations, placing us several rungs higher on the ‘2009 our storage capacity. Accordingly, we modified some of it Transparency Ladder.’ to accommodate the storage of other products. Demand for blending services increased, as did demand for separate Our people are our biggest asset storage of various components of such products as biofuels. Over the period from 2002 through 2009, together, we positioned the global Vopak network such that it satisfies The sound relationships we maintain with our customers, our customers’ requirements to an even greater extent, the long-term nature of our contracts and our market thereby causing it to stand out from the competition. expertise and position enable us to gain a clear insight This fills our employees with pride, which is reflected in into the expected demand for our services. Our challenge the dynamism, commitment, and fun they demonstrate remains to proactively capitalize on market trends in shaping when working in our company, as well as in our our storage service offering. We do so by providing the attractiveness in the labor market. highest quality infrastructure, expanding existing terminals, constructing terminals at strategic locations offering deep- In our business model, many decisions are made on the water access and never ceasing to improve our operational interface between our services and our customers. We train efficiency (e.g. by realizing short vessel and truck turnaround the best people to make such decisions, supporting them times). with tools and investing in their knowledge and capabilities. Furthermore, we ran a number of projects and campaigns Expansion of our global terminal network in 2009 in the area of health, safety, and the environment, In 2009, our storage capacity increased by 1.2 million cbm seeking to safeguard the well-being of our employees, to reach a total of 28.3 million cbm. Commissions included subcontractors and third parties at our terminals and their new capacity in Singapore, the Bahamas, Rotterdam surroundings. Botlek (Netherlands), Tallinn (Estonia), and other locations. Storage capacity under construction through 2012 now In the area of safety, we unfortunately failed to achieve totals 3.0 million cbm. Major expansion projects include our ambitious targets. In 2009, we regrettably experienced the Europoort terminal in Rotterdam (Netherlands) and a fatal accident involving an employee of a subcontractor at terminals in Zhangjiagang (China), and Barcelona (Spain). our terminal, which is under construction in Jakarta. New terminals are under construction in Amsterdam This underscores the need for an unremitting focus on (Westpoort terminal) and Rotterdam (Gate terminal) (both in and investments in safety. the Netherlands), Jakarta (Indonesia), and Mejillones (Chile). More than ever before, Vopak committed itself to achieving Flawless execution of our customer service customer excellence in 2009. It did so both directly, by We decided in 2009 to put a further step on the road encouraging employees to think and act from a customer towards continuous improvement of our services. We are perspective more, and indirectly, by granting them now aiming for flawless execution in matters that are of opportunities for self-development in this area. After all, critical importance to our success. In doing so, we wish to personal development generally increases job satisfaction. add value for our customers. This should guide everyone’s Moreover, as a learning organization, Vopak encourages commitment, across the Vopak network. Not only do we its people to take more responsibility and learn from their want to be the world’s best provider of storage services, we own actions. Learning networks offer colleagues in various also aspire to be the most valued partner to our customers. locations and in various positions the opportunity to share Based on flawless execution, we offer our customers a yet their knowledge and best practices with others. In providing higher service level, while making our cost management Vopak Leadership Fundamentals, we seek to broaden more efficient. Our efficiency program, which is based on and deepen our managers’ leadership skills. We started – Royal Vopak Annual Report 2009 9


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    preparations in 2009 for implementing an improved approach to performance management in 2010. With the support of information systems, this will enable us to respond faster and more effectively to the demand for specific expertise and to changes in our business environment. Ten years and beyond… In November 2009, Vopak held limited celebrations marking the 10th anniversary of the merger of Koninklijke Pakhoed N.V. and Koninklijke Van Ommeren N.V. With a history that goes back four centuries, our corporate tradition has always been to satisfy our clients’ requirements, with a clear focus on a single but crucial part of the logistics process to provide our customer flexibility and cost efficiency. In the years ahead, we will seek to grow and perfect our company in keeping with our three-pronged strategy, which aims to achieve growth leadership, customer leadership, and efficiency leadership. We will do so by expanding our global network, increasing the service level across our network, continuing our investments in sustainability, taking further action in the area of safety, and improving our operations in terms of cost efficiency. As any professional athlete will tell you: good is just not good enough. Our aim is flawless execution of the services our customers request from us. Although the basis is robust, we should always do better, be faster and act more resourcefully. We look to the future with confidence. On behalf of the Executive Board, I wish to thank all of our colleagues for their hard work. I also thank our customers, collaborative partners and shareholders for their support and confidence. – John Paul Broeders Chairman of the Executive Board Koninklijke Vopak N.V. – Royal Vopak 10 Annual Report 2009


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    Report of the Supervisory Board Financial Statements of the company including the issuance of new financing It is our pleasure to present the 2009 consolidated preference shares, setting up new financing programs in financial statements of Royal Vopak as prepared by Asia and the US (the Asian Private Placement as well as the Executive Board. The financial statements were the US Private Placement, respectively), interest rate and prepared in accordance with International Financial foreign currency policy and internal and external quarterly, Reporting Standards (IFRS) as endorsed by the European half-year and annual financial reports. Continued attention Union. The financial statements have been audited by the was given also in 2009 to the impact on Vopak of the turmoil external auditors, PricewaterhouseCoopers Accountants on the financial markets and the possible effects of an N.V., and discussed with them on the basis of their report. economic downturn. The Supervisory Board also considered The unqualified auditors’ report is included on page 153. the progress being made on ongoing projects and the launch We approved the financial statements at our meeting of new projects. The various investment proposals relate on 11 March 2010 and recommend that you adopt them to expansion and Greenfield projects in nearly every part of during the Annual General Meeting of Shareholders of the world where Vopak operates. The safety performance 27 April, 2010. and cost control programs of inter alia the Chemicals Europe, Middle East & Africa division were discussed. The We concur with the proposal of the Executive Board, competitive position of Vopak was discussed as well as after the distribution of EUR 2.8 million on the financing the possibilities of continuing growth of the company in a preference shares in Royal Vopak, to distribute EUR 1.25 changed market environment. The external auditors were per share as dividend in cash to holders of ordinary shares, present during the meetings on the annual results and the resulting in a gross amount of EUR 79.9 million and to add unaudited half-year results. The interim report and auditors’ the remaining EUR 167.7 million to Other reserves. report issued by the external auditors were also discussed during those meetings. The minutes of all the meetings of Corporate Governance the Audit Committee were also considered and discussed In consultation with the Executive Board, we submitted in subsequent meetings of the Supervisory Board. In the corporate governance structure and the corporate addition to reviewing the HR Policy and Insurance Policy governance policy and a limited number of deviations of Vopak, the Supervisory Board discussed the results of from the best practice provisions of the Dutch Corporate the Executive Board’s review of the design and operation Governance Code (the ‘Code’) for discussion during the of the company’s risk management and control systems. Annual General Meeting of Shareholders in April 2008. At a meeting not attended by Executive Board members, The main points of Vopak’s corporate governance structure the Supervisory Board discussed the proposals of the are set out in a separate section of this Annual Report. Remuneration Committee, its own performance and that of The Corporate Governance structure and policy on this the Executive Board. The Supervisory Board also considered matter will be discussed during the Annual General Meeting its required profile, composition and competencies. of Shareholders to be held on April 27, 2010 as part of the consultation of this Annual Report. This report on the Core Committees activities of the Supervisory Board in the past year and During 2009, the Supervisory Board had an Audit in the period up to the publication of this Annual Report Committee, a Selection and Appointment Committee has been prepared in accordance with the provisions of and a Remuneration Committee. The composition of the Code, which has been amended and updated on these committees is given on pages 159 and 160 of December 10, 2008. this Annual Report. Supervision Audit Committee The Supervisory Board met on six occasions during the year The Audit Committee met on five occasions in 2009. under review. None of the Supervisory Board members was All of these meetings were attended by the external frequently absent from the Supervisory Board meetings. auditors. A core task of the Audit Committee was an extensive review of the financial reports and the budget As part of the Supervisory Board’s supervision before their consideration by the full Supervisory Board. responsibilities, the operational and financial objectives The Committee also discussed the financing structure, of the company were discussed at regular scheduled analyses of the financial ratios, currency management, meetings. Safety, Health, Environmental and Sustainability reports on the risks associated with the company’s issues were among the topics discussed during each of operational, commercial, financial and other activities these meetings. Other topics discussed regularly and in and management reporting. Particular attention has been depth included the strategy of Vopak, the budget, financing given to pension issues. Vopak’s fraud reporting procedure – Royal Vopak 14 Annual Report 2009


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    has also been reviewed and discussed as well as the Remuneration Committee investment proposal process. A presentation was given by We set out below the way in which the Remuneration the Corporate Tax Director about the Vopak Tax Strategy. Committee implemented the remuneration policy for The Corporate Insurance Director gave a presentation the Executive Board in the financial year 2009 and how on the Vopak Insurance Policy. The Audit Committee also we intend to implement the remuneration policy for the considered the findings of the Internal Audit department, Executive Board in 2010. the progress realized by management teams to implement recommendations from audits and the Internal Audit work Remuneration policy 2009 plan and approved the update of the Internal Audit Charter. The Remuneration Committee met on seven occasions in The Committee also discussed the scope of the audits, 2009. The composition of the Remuneration Committee recommendations in the management letters and the changed in 2009. Mr Van Loon was suddenly unable to fulfil current and future relationship with the external auditors. his duties for health reasons. We owe a debt of gratitude The Audit Committee monitored auditor independence to Mr Van Loon for his commitment and for the sound when non-audit services were provided. In compliance foundation he laid over the past few years for the present with the Code one meeting was held with the external remuneration policy. On 20 April 2009 Mr Van den Driest auditor without presence of the Executive Board (who was previously a member of the Committee and, members. Finally, the Audit Committee assessed its own hence, did not need to familiarize himself with the various performance throughout the year and its regulations. subjects) succeeded Mr Van Loon as the Committee’s During 2009, Mr Cremers again acted as financial expert Chairman. In part prompted by the recommendations as meant by the relevant best practice provisions of the set out in the Dutch Corporate Governance Code, the Code. Mr R.G.M. Zwitserloot joined the Audit Committee Committee was assisted by an external consultant in 2009. as member as of October 1, 2009, following approval from the Annual General Meeting of Shareholders of In its meetings, the Remuneration Committee discussed April 23, 2009. The Audit Committee consisted as from this the annually recurring subjects, such as salaries and short- date of the Chairman, Mr Cremers, Mr Van der Vorm and term and long-term variable income. In addition, a number Mr Zwitserloot. of subjects were given additional attention in 2009. First, the composition of the peer group used as an external Selection and Appointment Committee benchmark in setting the remuneration of the members The Selection and Appointment Committee met on two of the Executive Board was discussed. Dutch companies occasions, when the profile, in particular within the context similar to Vopak in terms of international coverage, capital of the new Code as published on December 10, 2008 as intensity, revenue, profitability, and market capitalization well as the composition of the Supervisory Board were were selected. This peer group consists of the following ten discussed. Vopak strives towards having a Supervisory companies: Arcadis, Boskalis, Corio, Draka, DSM, Fugro, Board of six members. Currently, the Supervisory Board has Imtech, Nutreco, SBM Offshore, and Smit Internationale. five members. Vopak has started the process to nominate Second, at the suggestion of the General Meeting, a new member of the Supervisory Board and expects to be preparations were made for introducing a new long-term able to announce the nominated candidate in the course variable income policy that would have a much simpler of 2010. The Supervisory Board decided to change the structure compared with the long-term plan used in composition of the Audit Committee. As from October 1, previous years. Third, the effectiveness of the financial 2009, Mr Zwitserloot is member of the Audit Committee. criteria and the level of the targets set for the short-term In addition, the Selection and Appointment Committee and long-term variable income were important areas of initiated the search for a new Executive Board member attention in 2009. of Vopak and successor of Mr De Koning, whose current term will expire on April 27, 2010. The Supervisory Board is In chronological order, the Remuneration Committee pleased to have been able to announce on 22 December, discussed the following subjects in 2009. Proposals 2009 that Mr F. Eulderink has been selected as nominated on these points were developed and submitted to the member of the Executive Board. Mr Eulderink will start Supervisory Board for approval. his activities for Vopak on January 11, 2010. His formal appointment as member of the Executive Board will be on the agenda of the upcoming Annual General Meeting of Shareholders of April 27, 2010. – Royal Vopak Annual Report 2009 15


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    The following fixed gross annual salaries were set for the will match the shares contributed by the Board members 2009 financial year (in EUR): in 2014 in the range from 0% to 200% of the contributed shares, up to a maximum of 56,158 Vopak shares. In EUR Broeders De Koning De Kreij Annual salary for 2009 500,000 400,000 425,000 A detailed overview of long-term variable income and the Annual salary for 2008 475,000 388,000 418,000 measurement of plans currently outstanding is given in Notes 28 and 32 to the company’s financial statements. In setting the salaries, the determining factor was that, together with the other remuneration components, they In early 2010, the results of the financial and personal should adequately remunerate Vopak’s Board members objectives for the short-term variable income for 2009, for their work and responsibilities. predetermined in accordance with the remuneration policy for 2009, were evaluated. The earnings per share rose Subsequently, the short-term variable income plan for from EUR 3.24 to EUR 3.84 which led to the maximum 2009 was adopted. The 2008 plan was continued, subject result achievable for the financial objective. On average, to two modifications. First, ROCE as a financial target achievement of the personal targets was considered good. was dropped, given its sensitivity to delayed execution of On aggregate, achievement of the financial and personal investment projects, maintaining earnings per share (EPS) targets resulted in the following short-term variable income. growth only in view of its simplicity and alignment with the shareholders’ interests. Also, the maximum short- In EUR Broeders De Koning De Kreij term variable income opportunity for the chairman of Short-term variable the Executive Board was raised from 70% to 75% to remuneration for 2009 343,750 247,500 262,969 make the short-term variable income component more competitive. Percentages for the short-term variable income opportunity of the other Executive Board members remain Remuneration policy in 2010 unchanged. The personal objectives were then determined In the second half of 2009, the Remuneration Committee and aligned to the realization of strategic projects and our re-evaluated the remuneration policy for the Executive sustainability policy. Board. A key criterion for this was consideration of the entire remuneration package for the Chairman and members Financial targets for the 2009 financial year were set for of the Executive Board against the background of the both the short-term and the long-term variable income challenges the company faces in the next few years. plans. In setting these, various economic scenarios were The overall remuneration package consists of the annual drawn up and their impact on the company’s growth and salary, short-term and long-term variable income, and annual financial position was analyzed. pension contribution. In its meeting of 23 April 2009, the Annual General Meeting To obtain a clear view of whether the overall remuneration broadly supported and endorsed the policies pursued, while package was in line with the market, an analysis was made expressing the wish that the long-term variable income plan, of the remuneration packages of board members in the peer in particular, be simplified. group and publications of Hay Group and Towers Watson were used. The median of the peer group was taken as After the long-term variable income plan, consisting of the a reference in setting the remuneration of Vopak’s Board Performance Shares Plan and a Share Matching Plan, had members. The outcome of these analyses was an important been adopted for 2009, a conditional grant of performance basis for salary proposals and variable short-term and long- shares was made to the members of the Executive Board term income plans for 2010. for the period 2009 to 2011. Depending on growth in earnings per share during the period 2009 to 2011, Vopak In April 2010, the Annual General Meeting will be requested will in 2012 unconditionally grant between 0% and 150% to approve amendments to the remuneration policy of the number of shares conditionally granted, up to a concerning changes to the variable income plans. maximum of 35,868 shares. The proposed changes will make the remuneration package more competitive and simplify the various plans. As part of the Share Matching Plan, the Board members An important criterion is and will be that the Executive were granted the opportunity to supplement their personal Board is encouraged to pursue a policy that focuses on share deposit. All three members purchased shares at long-term profitable growth for the company and is their own expense and supplemented their deposits up to rewarded for that policy if successful. With respect to their target level, which is one year’s salary for an individual the short-term variable income plan, non-financial targets member, expressed in shares. Depending on growth in will be introduced in 2010, focusing on such aspects earnings per share during the period 2009 to 2013, Vopak as sustainability, safety, and customer and employee – Royal Vopak 16 Annual Report 2009


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    satisfaction, in addition to the financial EBITDA target. Finally, we would like to express our sincere appreciation to In order to reiterate the importance of these aspects, the Executive Board and all the company’s employees for the individual targets for the Executive Board will be their efforts in 2009 and for the corresponding improvement replaced by team targets. in the results. With regard to the long-term variable income plan, a new The members of the Supervisory Board have signed the plan will be introduced in 2010 to replace the current plan financial statements in order to comply with the statutory comprising a Performance Share Plan and a Share Matching obligation pursuant to article 2:101 paragraph 2 Dutch Civil Plan. The new plan will be awarded once every four years Code. This provision provides that the members of the and will replace both partial plans from 2008 and 2009. Supervisory Board should sign the financial statements. The new plan will provide for a reward of which 50% will be in shares and 50% in cash. The value of the reward Rotterdam, 11 March 2010 will depend on growth in earnings per share and share price developments during a four-year performance period The Supervisory Board (2010 through 2013).Upon awarding this reward, the Board member must hold the obtained shares in an individual A. van Rossum (Chairman) deposit for two years after which period the shares will be M. van der Vorm (Vice-chairman) for his own disposal. It has been agreed that the present F.J.G.M. Cremers long-term plans will be continued and awards will be made C.J. van den Driest following the plan periods originally set. R.G.M. Zwitserloot Supervisory Board 2010 The remuneration of the chairman and members of the Supervisory Board, like that of the Executive Board, has to be in line with the expected work and increasing responsibilities. In 2009, the Annual General Meeting adopted the remuneration for the 2009 financial year as set out below, and resolved that no changes would be made in it for the 2010 financial year. Gross remuneration In EUR per year Chairman Members Supervisory Board 60,000 42,500 Audit Committee 10,000 6,000 Remuneration Committee 7,500 5,000 Selection and Appointment Committee 5,000 3,500 Taking into account that the recommendations set out in the Dutch Corporate Governance Code with respect to a company’s former board members acting as chairman of certain sub-committees, the Supervisory Board will review the Remuneration Committee’s Chairmanship in 2010. Composition of the Supervisory Board Mr Van Loon had to withdraw from the Supervisory Board on 17 March 2009 for health reasons. We thank Mr Van Loon for his valuable contributions over the years and wish him well for the future. Mr R.G.M. Zwitserloot was appointed by the Annual General Meeting of Shareholders of April 23, 2009 as member of the Supervisory Board effective as of October 1, 2009. Mr Van den Driest was appointed Chairman of the Remuneration Committee as per April 20, 2009. Mr Van den Driest succeeded Mr Van Loon as Chairman of this Committee. – Royal Vopak Annual Report 2009 17


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    Contents 2 Contents 114 13. Joint Ventures and associates 148 8. Remuneration of Supervisory 3 Profile 115 14. Classification of Financial Board Members and 5 Key Figures Instruments Executive Board Members 8 Letter from the Chairman of 117 15. Loans Granted 148 9. Contingent Liabilities Vopak’s Executive Board to our 118 16. Other Financial Assets Customers, Employees, 118 17. Deferred Taxes Other Information Shareholders and Partners 119 18. Other Non-current Assets 152 Contents 14 Report of the Supervisory Board 119 19. Trade and Other Receivables 153 Auditors’ Report 120 20. Cash and Cash Equivalents 154 Articles of Association Provisions Report of the Executive Board 120 21. Assets Held for Sale Governing Profit Appropriation 20 Contents 121 22. Issued Capital, Share 155 Proposed Profit Appropriation 21 Report of the Executive Board Premium and Treasury 156 Stichting Vopak 28 Growth Perspective Shares 157 Stichting Administratiekantoor 30 Corporate Social Responsibility 122 23. Other Reserves Financieringspreferente Aandelen 35 Financial Performance 123 24. Retained Earnings Vopak (‘the Foundation’) 40 The World of Vopak 123 25. Non-controlling Interests 158 Information on the Executive 42 Review by Division 123 26. Interest-bearing Loans Board Members 44 Chemicals Europe, Middle East 125 26.1 US Private Placements 159 Information on the Supervisory & Africa (CEMEA) 125 26.2 Asian Private Placements Board Members 46 Oil Europe, Middle East & Africa 126 26.3 Bank Loans and Other 161 Principal Company Officers (OEMEA) Private Placements 162 Consolidated Subsidiaries and 48 Asia 126 26.4 Credit Facilities Joint Ventures 50 North America 126 26.5 Financial Ratios 163 Five-year Consolidated Summary 52 Latin America 126 27. Pensions and Other 164 Glossary 56 Risk and Risk Management Employee Benefits 61 Directors’ Statements 130 28. Long-term Incentive Plans 62 Information for Shareholders (LTIPs) 66 Corporate Governance 133 29. Other Provisions 70 Corporate Governance Report 133 30. Trade and Other Payables 134 31. Derivative Financial 2009 Financial statements Instruments 76 Contents 138 32. Remuneration of Supervisory 77 Consolidated Financial Statements Board Members and 78 Consolidated Statement of Executive Board Members Comprehensive Income 138 32.1 Remuneration of Supervisory 79 Consolidated Statement of Board Members Financial Position at 31 December 138 32.2 Remuneration of Executive 80 Consolidated Statement of Board Members Changes in Equity 139 32.3 Performance Shares and 81 Consolidated Statement of Matching Share Plan Granted Cash Flows to Executive Board Members 82 Principles 140 32.4 Options Granted to Executive 95 Financial Risks and Risk Board Members Management 140 33. Cash Flows from Operating 102 Segment Reporting Activities (Gross) 104 Changes in Subsidiaries 141 34. Operating Lease 141 35. Investment Commitments Notes to the Consolidated Statement Undertaken of Income 141 36. Contingent Assets and 106 1. Exceptional Items Contingent Liabilities 106 2. Other Operating Income 142 37. Related Parties 106 3. Personnel Expenses 107 4. Depreciation, Amortization Company Financial Statements and Impairment 143 Company Statement of Income 107 5. Other Operating Expenses 143 Company Statement of Financial 108 6. Result of Joint Ventures and Position at 31 December Before Associates using the Equity Profit Appropriation Method 108 7. Interest and Dividend Income Notes to the Company Financial 109 8. Finance Costs Statements 109 9. Income Tax 144 1. General 109 9.1 Recognized in the Statement 144 1.1 Accounting Policies of Income 144 1.2 Participating Interests in 109 9.2 Reconciliation of Effective Group Companies Tax Rate 144 2. Participating Interests in 110 9.3 Taxes Recognized in Group Companies Comprehensive Income 144 3. Loans Granted 110 10. Earnings per Ordinary Share 145 4. Shareholders’ Equity 147 5. Interest-bearing Loans Notes to the Consolidated Statement of 147 6. Derivative Financial Financial Position Instruments 111 11. Intangible Assets 148 7. Provisions 113 12. Property, Plant and Equipment – Royal Vopak 20 Annual Report 2009


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    Report of the Executive Board Vopak in strategic perspective Mission Statement Vopak aims to be the world’s most respected independent storage provider for bulk liquids. Our aim is to contribute to optimizing the reliability and efficiency of our customers’ regional or global supply chain processes by using our network of storage terminals around the word, our hundreds of years of experience, our partners, our logistics and storage know-how and our solution- driven and agile attitude. In creating this value, our ultimate goal is to gain the recognition of our customers, employees, shareholders and business partners. We aim to reduce the intensity of the use of raw materials at the terminals as well as energy and water consumption, and to curb emissions and spills to soil, air and surface water. Vopak’s ambition is to excel in a strongly rooted culture of safety, flawless execution and operational excellence. We believe that we can only achieve this ambition by acting according to the Vopak Values. These seven values address the economic, social and environmental responsibilities as a code of conduct by acting with integrity, professionalism, improvement, ownership, service, passion and agility. Embarking on a solid course As a terminal operator, Vopak focuses on facilitating physical, liquid and gaseous product flows from global and regional oil and chemical companies. We have a clear, market-driven strategy based on successfully supporting our customers by offering excellent services and by being resourceful and considered in seizing opportunities, particularly in how we operate and expand our network. In addition to our global network of storage terminals, our people are at the heart of our business. This strategic decision has enabled us to achieve our ambitious growth targets. In the past year, in which the economic picture has been uncertain, the course we have charted has proved to be a very robust one. We have been able to respond appropriately to the volatility in the global markets and to continue to pursue a solid course. This offers a robust reference framework for our customers, shareholders and employees. Leadership on three fronts Our strategy rests on three pillars. We seek to achieve customer leadership, efficiency leadership and growth leadership. This report is an opportunity for us, the Executive Board, to examine the results we have achieved in these areas in 2009. We aspire to position Vopak permanently on the global market as the best tank terminal operator. Our global network offers every opportunity to achieve this. We seek to proactively support the supply chains of our business partners and to implement potential efficiency – Royal Vopak Annual Report 2009 21


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    savings. We are also open to many forms of partnership. remain committed to searching for network expansion Key to this is an ongoing dialogue with our customers and opportunities, particularly in locations that will benefit the our community. We can only provide excellent customer most from the changing supply and demand situation. service if we are fully aware of our customers’ wishes and requirements. We also seek to achieve systematic Confidence of banks and investors cost efficiency and operational excellence. A sustained In spite of the uncertain economic situation, Vopak gained improvement on all fronts should lead to continuous and retained the confidence of shareholders and other flawless execution of all our business activities. financial players. This was borne out by two large financing Internal communication is just as important as the dialogue deals which we successfully concluded in 2009 to support with our customers and our surroundings. Our staff the current and future growth of the business: a private should be fully immersed in our strategy and aware of the placement of USD 680 million in the United States important role they play in it. The Vopak Values and the and a private placement of SGD 210 million in Asia. sustained improvement in our performance are guiding Loans were also entered into by various joint ventures principles throughout the organization. The mission to and a group of shareholders contributed equity totalling involve all staff in implementing our strategy has resulted EUR 110 million earmarked for further growth by in dynamism and commitment, which is tangible in all participating in a renewed cumulative financing areas of the organization and which has produced preference shares program. demonstrable results. Our financial performance in 2009 is more than satisfactory Vopak’s Executive Board is delighted to see that our long- and we have been able to achieve or indeed exceed our term growth strategy, which has generated robust growth growth targets. in recent years, is acknowledged and supported by a Over the next years, too, we will be pursuing our strategy broad-based group of international institutional investors. with conviction, changing the emphasis year on year where This ensures Vopak’s continuous good access to relevant necessary. In the remainder of this report, you will be able capital markets. to find out what we have achieved in this area in 2009. Ample opportunities for growth The pursuit of flawless execution Vopak’s strategy focuses on growth, customer and In 2009, we paid additional attention to our global pursuit of operational efficiency leadership. When reviewing growth operational excellence, concentrating on flawless execution opportunities, we research various expansion avenues. by delivering high service levels, efficient cost management, Without exception, in the exploratory phase, these should safety and growth. With our focus on the flawless execution already be accompanied by active interest from our of all our activities, we focus ourselves on avoiding any customers. Our growth plans consist of capacity expansion mistakes. This is an ambitious goal, which demands the at existing locations, but we also investigate new locations full commitment of all Vopak staff. In specific operations on where there may be a need for our services, as well the work floor, flawless execution means that any accident as new business concepts that are consistent with our is one too many. And the same applies to each operational strategy. Examples include the options for an LNG terminal incident and each spill. By preventing incidents, we are at Fos-sur-Mer (France), as well as a joint feasibility study saving lives, health, time, energy and the environment, into a storage terminal to be developed for oil products resulting in lower operational costs in the long term. in Pengerang, Johor (southern Malaysia). Our current and Because a policy that focuses on reducing losses to zero available long-term financing facilities offer a healthy basis results in satisfied customers and substantial cost savings. for further growth. Looking to the future with confidence The outlook for the demand for our services remains good. Optimum service to customers is top priority The global imbalance in the production and consumption of oil and chemical products boosted the demand for storage Dialogue with our customers services in 2009. The demand is expected to increase In line with the three pillars underpinning the Vopak strategy further. The imbalance in the supply of and demand for optimum service to our customers is our top priority. oil has led to a sustained and robust demand. This is not Service is fundamentally important for our commercial just the result of what are known as oil contango and strategy. A higher level of service to our customers offers backwardation situations, when there is a relatively short- Vopak the chance to distinguish itself further from the lived increase or decline in demand for tank storage by competition. trading companies as a result of an expected sharp rise or fall in the oil price. Furthermore, there is still a shortage of We aim to provide even better services by offering training, storage capacity to support all regional and global logistic courses and competence management and by standardizing flows of oil and chemical products. This means that we and improving our processes, effectively supported by are confident about the long-term prospects. In addition efficient information systems. We are also in constant to our focus on facilitating physical product flows, we dialogue with our customers, so that we can continue to – Royal Vopak 22 Annual Report 2009


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    keep improving our services supported by measurable Sustained improvements data. To position ourselves as market leader, as a cost efficient supplier delivering added value to its customers, we aim Customer survey to help make further improvements to the supply chain One of the tools we use to identify the wishes and of our customers and partners. To achieve this, in both its requirements of our customers is the customer survey, culture and business operations, Vopak strives to achieve which we started in 2008. A more comprehensive version continuous improvement and innovation of its processes, of the survey was repeated in 2009. Third parties, such not only operationally, but also commercially and financially. as shipping companies, surveyors, truck drivers and local agents were also asked for their opinions. Compared From OEI to Lean with the previous survey, the results of the 2009 survey Vopak’s Operational Efficiency Improvement (OEI) reveal a positive trend. By feeding back the results, we program was launched division-wide in 2007 to boost have also been able to see how the best performing Vopak the cost management program. OEI projects have been organizations have achieved their excellent performances. carried out at 35 terminals, generating impressive results. We can learn from and capitalize on these best practices in The emphasis has always been on three interlinked areas: our global Vopak network as a service-oriented organisation. creating better cost awareness, reinforcing the competitive position and growing operational efficiency. Continued tightening One element of the customer survey is the Net Promotor In the context of continuous improvement, Vopak wants Score (NPS), a way of measuring the strength of to take an important next step in taking all operational customer loyalty for a business. Our score improved in efficiency operations to the next level. In 2009, it was 2009, but has not yet reached the level we would like. therefore decided to continue on the course charted by the In addition, the Vopak Service Quality Index (VSQI) shows OEI project using Lean. This is a proven quality improvement that various business processes have been tightened up in method and philosophy to not only establish an integrated 2009. We will continue with this in 2010. cost management program, but also achieve an integrated culture of continuous improvement (efficient and effective). Customer Relationship Management (CRM) The wishes of our customers are the primary focus of We aim to apply the same instrument globally to establish Lean. The global implementation of Lean will be rolled out what we do for individual customers, the requirements over the next five years and will involve the entire Vopak or complaints they have, how we can respond to them organization: divisions, countries and terminals on the appropriately, how we can monitor the associated one hand and corporate positions and departments on processes, etcetera. At the same time, we want to be the other. At its core, Lean focuses on reducing ‘waste’ in able to steer the service-related conduct of our staff in the the organization - activities and pursuits that add no value right direction. With the implementation of a robust CRM for the customer. The quality increases and the costs fall system last year, Vopak has further standardized the sales in proportion to the reduction of waste. In addition to the and service processes globally, with quality, completeness positive impact for our customers, the continued focus on and accuracy of customer information in the spotlight. This process improvement and on reducing waste is closely has given the management better control information and linked to Vopak’s sustainability program. has laid excellent foundations on which Vopak can build to further improve the services it provides. ‘The Vopak Way’ Standardization is important for operational excellence. The Vopak Way involves all the global standards expected From operational efficiency to operational excellence to make the business operations safer, smoother and more cost efficient. The broad-ranging package, with We make the difference 75 standard procedures for operations, technology and The effectiveness and efficiency of operational processes safety, was introduced in April 2009 and was subsequently are of course high priority for a tank terminal operator implemented across the divisions. such as Vopak. Streamlining operational processes with an integrated approach fosters the best possible service The Vopak Way promotes communication and knowledge to our customers. A sustained focus on simplifying, sharing, given that the uniform descriptions generate improving and modifying processes promotes cost a Vopak language understood by all divisions. It offers efficiency. All this facilitates growth leadership in the extensive opportunities for sharing and exchanging Vopak strategy. Ultimately, the successful implementation knowledge, enabling us as a learning organization to of operational excellence in the services we provide to our continue to develop. It also offers our customers a customers can make the difference with our competitors uniform and high-quality image of our company. and can significantly strengthen Vopak’s market position as global market leader. – Royal Vopak Annual Report 2009 23


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    Sourcing as ONE Vopak Strategic analysis In 2009, Vopak launched its new sourcing strategy ‘Sourcing Strengths as ONE Vopak’. Vopak aims ‘to imprOve, buNdle and sharE’ – We are the global market leader, present in all major port locations. day-to-day procurement operations using this strategy. – We are financially robust and have access to long-term financing The advantage it offers is the ability to make savings on facilities. Vopak’s overall discretionary expenditure over the next few – Our reputation rests on our level of service and safety record. The years. Equally important is reducing the risks and liabilities, result is a reliable global brand. promoting standardization and maximizing quality, thereby – We operate according to a single independent business model and achieving the lowest possible total cost of ownership. apply global standards. This goal requires all Vopak employees to work with the – We are highly diversified in terms of geographies, products and same procurement processes. The global implementation market categories. will be initiated in 2010. – Our portfolio of long-term contracts increases predictability. – We are enterprising and are proactive in utilizing our opportunities Vopak Maintenance Management without taking undue risk. In 2009, Vopak opted to switch from different location- – Our close and long-term partnerships afford us excellent access to based maintenance management systems to a single important markets. global system. This will enable us to maintain the company’s technical resources at the 79 Vopak terminals Opportunities more efficiently in the long term, including in the – We can benefit from the increasing distances between locations preventative phase, so that installations and equipment are where oil and chemical products are produced and where they are and remain in excellent condition and the continuity of the consumed. business processes is safeguarded 24/7. The decision to – A number of countries are liberalizing their economies. adopt this uniform solution offers the prospect of a strong – Increasingly distinct market specifications are creating a need to and uniform improvement in maintenance management blend components into stored products and store components for and also means a substantial cost saving. With the phased blending. This includes the growing demand for biofuels. implementation of the Infor software package, which is internationally known as the best of breed technology, in Challenges 2009 a start had already been made on two pilot terminals, – We still have an insufficient presence in the US and African oil with the aim of completing the roll-out at the end of markets in particular. 2011. The package features advanced software modules, – The company is working to integrate its many acquisitions and which allow Vopak to manage its technical resources, mergers to create a single network of terminals operating under the all information about these resources and the required same standards and using the same expertise. maintenance operations globally in a proactive and – The insufficient recruitment of qualified personnel might cause excellent way. delays in operating projects and therefore repress the current strong capacity growth. Uniform ICT infrastructure – There is a scarcity of land available in strategic ports. The use of ICT facilities helps Vopak expand its leading – Some customers in the chemical industry are suffering from the position. All our ICT efforts seek to support the Vopak recession. strategy, which is to create value in our ambition to achieve – The increased focus of the major oil companies on upstream growth leadership, customer leadership, and efficiency activities and related possible closures and divestments of less leadership. One of our organization’s key objectives is efficient refineries will further shape the oil storage market. to optimize and harmonize our processes and systems, and ICT facilities should fit into this objective seamlessly. Standardization is an effective remedy against the current fragmentation of ICT facilities across our divisions. Having a single, smoothly operating global ICT network is an important enabler for achieving that objective. A uniform ICT infrastructure should be capable of providing ongoing support to our business processes and facilitate initiated changes. Following various organizational and infrastructure modifications, we will in the years ahead make a number of important improvements and implement new enterprise systems. Examples include the planned overhaul of the existing ERP system, the implementation of advanced terminal automation systems, and the introduction of a maintenance management system, a talent management system, and an internal web portal that will serve as a platform for sharing and enriching information. – Royal Vopak 24 Annual Report 2009


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    Strengthening our leading position at strategic have also been agreed: at our Europoort terminal in locations Rotterdam (the Netherlands) 160,000 cbm will be added, in Zhangjiagang (China) a further capacity expansion of The most valued and respected storage company in 177,000 cbm is planned and in Barcelona (Spain) the world 155,000 cbm. Growth leadership is one of the three prongs of the Vopak strategy. Vopak aims to maintain and strengthen its leading The overview on pages 28 and 29 provides the global position at important locations and to further intensify its projects. commercial relationships with strategic customers. The company aims to expand its global operations and storage LNG capacity in strategically located ports by: Vopak aims to further diversify its core operations by – expanding existing terminals; entering the Liquefied Natural Gas (LNG) storage and – developing new terminals in geographical areas where transshipment market. Vopak is developing import Vopak already operates; terminals where liquefied natural gas is received and – developing new terminals in geographical areas which are regasified. From here, the gas is supplied via pipelines new to Vopak; to prominent global energy companies. This focus on – developing terminals for new products or markets, such the relatively clean and strategically important LNG and as for LNG and biofuels; the construction of LNG terminals is a logical decision – effecting mergers and acquisitions. that is a perfect match for our core business, namely, Our main aim is to be the world’s most valued and the storage and transhipment of bulk liquids. Although respected storage company and to become the service- many plans related to LNG are still in the research phase, driven supplier of choice for our customers, one which is market analysts are optimistic about the prospects of difficult to match. the operations. This is in spite of the LNG market facing oversupply in a number of regions in the coming period Significant capacity expansion owing to capacity coming on stream in a period in which The vigorous expansion of our financing capacity in 2009 demand for gas is lagging due to the economic recession. has facilitated the further implementation of our growth ambitions as included in our global terminal network LNG terminal Rotterdam: Gate terminal expansion strategy, supported by a healthy demand from At the Rotterdam port, in a joint venture with Gasunie, one customers and sound financial results in recent years. of Europe’s largest LNG import terminals is being built: Our growth ambition has taken shape in several ambitious Gate terminal. The terminal will play an important role in the expansion projects, which are in various stages of future supply of gas to the European market. Gate terminal development. B.V. has concluded a project financing agreement worth EUR 136 million with the European Investment Bank (EIB) Vopak Terminal Jakarta and a syndicate of eight international relationship banks. This modern oil storage terminal in Indonesia, the result of The facility is an addition to the previous financing a joint venture between the Indonesian PT AKR Corporindo agreement of EUR 745 million, which was signed and Vopak, will have a total storage capacity of 450,000 in July 2008. cbm. Good progress was made on the construction of the first phase in 2009, which will generate storage capacity The annual throughput capacity of the terminal is 12 billion of 250,000 cbm. The construction of the terminal was just cbm gas per annum (bcma), divided equally between four about completed in 2009 and it will be fully operational in European energy suppliers: DONG Energy, EconGas, E.ON 2010, making it the largest private oil storage terminal in Ruhrgas and Essent. Long-term contracts have been signed the region. with these suppliers. They have also acquired minor stakes in Gate terminal. Vopak Terminal Westpoort The construction of the new Vopak Terminal Westpoort, with The construction of the terminal is on schedule and an initial storage capacity of 620,000 cbm for oil products within budget. In 2009, Gate terminal reached its highest at the Afrikahaven in Amsterdam, the Netherlands, also got construction point, when the roof was added on the third off to a good start. In 2010 the construction of the second and provisionally last tank at the terminal. The terminal is phase will start, resulting in an ultimate storage capacity to expected to be fully operational in the second half of 2011. 1.2 million cbm. The port of Amsterdam, the Netherlands, is the European trading interchange for gasoline products. LNG terminal France: Fos-sur-Mer The first phase of the new terminal is expected to become In mid-2009, Shell and Vopak announced their cooperation in operational in 2011. developing an LNG terminal at Fos-sur-Mer, in the port area of Marseille, France. Vopak is the majority shareholder with Various other capacity expansions a share of 90%. Shell holds the remaining share of 10%. In 2009, we increased our entitlement in the Maasvlakte Fos Faster will be developed as part of the expansion Oil Terminal (MOT) in Rotterdam by 360,000 cbm, for which strategy of the Grand Port Maritime de Marseille in close MOT will build extra capacity. Other capacity expansions cooperation with the port authorities. – Royal Vopak Annual Report 2009 25


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    The Fos Faster LNG terminal will have a planned initial As a leading service provider in the field of conditioned throughput capacity of 8 bcma, which is equivalent to storage and transshipment, Vopak has a responsibility 15% of the current annual gas consumption in France. towards investors, employees and business partners to Depending on market demand and the permits and approval act morally and ethically in all the facets of its operations, procedures, the terminal could be operational in the middle anywhere in the world. Integrity is the main factor in of this decade. establishing and maintaining our reputation and in providing high-quality services to our customers. To Vopak, its LNG projects at Eemshaven and Rostock reputation is just as valuable as its staff, its installations and Vopak LNG is also participating in projects at Eemshaven services. The Vopak business principles, based on integrity, (the Netherlands, 25%) and Rostock (Germany) to are set out in Vopak’s Code of Conduct. investigate the options for developing LNG terminals In 2009, we issued our first annual Sustainability Report, at these sites in the longer term. which covers 2008. An updated version will be published every spring. Independence and size offer competitive advantages Adding sustainable value Boasting a total storage capacity of more than 28 million cubic metres For Vopak, sustainability means a profitable operation that (cbm), Vopak is by far the world’s largest independent supplier of generates added value for our stakeholders without having tank terminal storage. We currently estimate the world market for an unacceptably negative social or environmental impact. independent tank storage to be approximately 245 million cbm, Vopak also considers the Safety, Health, Environment and giving Vopak a 11.6% market share. Quality (SHEQ) policy to be part of a more comprehensive sustainability strategy. Our company faces competition from many companies, most of which are locally or regionally focused. Many operate other businesses To document its sustainability performance and to make besides storage, such as shipping, pipeline operations or trading. it transparent, Vopak adopts the internationally recognised Almost all producers use local storage only for their own captive use guidelines of the Global Reporting Initiative (GRI). The GRI and do not provide tank capacity to third parties. For that reason, we guidelines have been drawn up to promote transparent, do not include these production storage facilities in our definition of verifiable financial, economic, social and environmental the market. reporting. More information about our sustainability policy can be found in the section on Corporate Social Vopak has the largest spread of terminals in the world and operates Responsibility on page 30 and on the Vopak website. these independently. Our size and independence offer obvious competitive advantages. We can focus fully on our customers’ Opportunities for the future interests while utilising our scale to bring cost efficiency to our Vopak collaborates with customers and suppliers for the customers and other stakeholders. long term. We aim to be the supplier of choice for our customers by our high-quality service offering and our performance and initiatives in the area of sustainability. Sustainability as a guiding principle Sustainability offers opportunities to reduce current and future operational and development costs for the business Responsible for people, planet and profit and helps to improve our competitive advantage, market Our pursuit of sustainability is based on the belief that it position and profit. A coherent sustainability strategy is the responsibility of each citizen and organization to do reduces the risks of rising costs associated with negative everything possible to protect the environment. The Vopak internal events (spills, incidents, etc.) or external events Values are also a clear benchmark. Doing business with (by action groups, legislative changes, etc.). sustainability in mind is also sensible from a business perspective. We can only retain our competitive edge if we dedicate ourselves fully to our customers, our people, our services, the environment and the local communities in which we work. In its sustainability approach, Vopak follows the 3-p model of people, planet and profit. We also have a responsibility to local communities, our people and the planet. Vopak aims to reduce the intensity of the use of raw materials, energy and water and to curb emissions and spills to soil, air and surface water. In addition, we want to minimize the negative impact and maximize the positive impact in the communities in which we operate. – Royal Vopak 26 Annual Report 2009


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    Growth Perspective Location Country Ownership Type Products CBM Asia Lanshan China 41.7% Expansion Chemicals 3,700 Banyan Singapore 69.5% Expansion Chemicals 7,500 Jakarta Indonesia 49% Greenfield Oil products 250,000 Zhangjiagang China 100% Expansion Chemicals 75,300 Ningbo China 37.5% Expansion Chemicals 5,500 Zhangjiagang China 100% Expansion Chemicals 102,000 Caojing China 50% Expansion Chemicals 30,000 Latin America Alemoa Brazil 100% Expansion Chemicals 37,200 Coatzacoalcos Mexico 100% Expansion Chemicals 8,400 Mejillones Chile 50% Greenfield Chemicals 10,000 Aratu Brazil 100% Expansion Chemicals 26,300 North America Deer Park United States 100% Additional jetty CEMEA Barcelona Spain 50% Expansion Oil products 155,200 OEMEA Hamburg Germany 100% Expansion Chemicals 8,900 Gothenburg Sweden 100% Expansion Oil products 20,000 Rotterdam The Netherlands 100% Expansion Oil products 360,000 Rotterdam The Netherlands 100% Expansion Oil products 160,000 Amsterdam The Netherlands 100% Greenfield (phase 1) Oil products 620,000 Amsterdam The Netherlands 100% Greenfield (phase 2) Oil products 570,000 LNG Rotterdam The Netherlands 40% Greenfield LNG 540,000 – Royal Vopak 28 Annual Report 2009


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    2009 2010 2011 2012 start construction commissioned – Royal Vopak Annual Report 2009 29


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    – Corporate social responsibility Employees subsidiaries by region Average over the year To us, corporate social responsibility means sustainable 00 2 entrepreneurship in every possible respect. It means 1, that we use the resources the company depends on 00 economically, ensuring that they are preserved for future 0 1, generations. By definition, any sustainable company Other Europe, Middle East & Africa always sets its sights on the longer term. Vopak has a long 0 80 tradition of sustainable entrepreneurship. For four centuries, Vopak has been an integral part of the surroundings in 0 60 which it operates. During that long history, we have consistently developed ourselves into a globally operating 0 corporation. And wherever we go, we seek to forge long- 40 North America Latin America Netherlands term relationships with our people, our partners and the world in which we live. Every time we set up somewhere, 0 20 Asia we enter into commitments for many decades. And we do so for a reason. We assume responsibility towards our 0 people, our stakeholders and our business. But no less 08 09 08 09 08 09 08 09 08 09 20 20 20 20 20 20 20 20 20 20 towards our surroundings and the environment, ensuring that everyone benefits in every possible way. – Sickness absenteeism In fulfilling our objective to do business in a sustainable As a percentage manner, we apply the 3P model of people, planet and profit, looking to strike the perfect balance between the 3 Ps. 5 2. Given the nature of our operations, we address some aspects of sustainability rather more sweepingly, however. As we store and tranship upwards of 100 million tonnes of 0 2. oil and chemical products annually, we have no choice but to focus specifically on safety. In doing so, we distinguish between personal safety and process safety. For many 5 1. years, we have pursued a proactive Safety, Health and Environment (SHE) policy, supported by such initiatives as 0 the annual global SHE day. 1. Transparency based on GRI guidelines 5 0. As our overarching Vopak Sustainability Strategy is rolled out in phases throughout the Group, SHE policies are increasingly embedded into it. Furthermore, Vopak wishes 0 0. to be unequivocal and transparent towards its stakeholders 05 06 7 8 09 0 0 20 20 20 20 20 concerning the sustainability policy it pursues, its results and Vopak’s own aspirations. To record and provide further – insight into its performance in the field of sustainable Safety own employees (Total Injury Rate) entrepreneurship, Vopak adheres to the internationally Total Injuries per 1 million hours worked recognized guidelines issued by the Global Reporting Initiative (GRI). They were prepared to promote uniform, 10 measurable reports globally in the financial, economic, 9 social and environmental areas. 8 A first step 7 We have based our interpretation of people, planet and profit, and our acknowledgement of their interdependence, 6 on fifteen selected GRI Key Performance Indicators (KPIs) 5 that we report on. They express the performance in areas 4 relevant to Vopak, and for which reliable information is available internally. For now, the KPIs address economic, 3 environmental and social performance areas as a first step 2 towards comprehensive sustainability reporting. In the longer term, we aspire to scale up the fifteen GRI KPIs to a 1 higher level. For we are convinced that, in the end, applying 0 05 06 07 08 0 9 20 20 20 20 20 – Royal Vopak 30 Annual Report 2009


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    the principles of sustainable entrepreneurship will result employees, contractors and neighbors a safe working in high-quality services together with a reduction in environment. avoidable costs. A company-wide survey among employees into their job Win-win situation satisfaction showed a high degree of commitment and In launching its new sustainable development policy, Vopak enthusiasm. Our corporate strategy is understood and has taken a great leap into the 21st century. Sustainability, welcomed by a large proportion of our employees. We are the single most important theme of the century, requires delighted about our low average absenteeism rate, which large-scale application in practice. We wish to demonstrate in the year under review showed a further decline to 1.8% our industry leadership in the area of sustainable (2008: 2.1%). entrepreneurship, too. To Vopak, seeking to do business in a sustainable way means creating a win-win situation that Prevention adds value for all our stakeholders and has no unacceptable Safety has been and always will be a top priority in impact on society and the environment, i.e. conducting everything we do. Accordingly, preventing accidents operations in a climate-neutral manner. Our customers and incidents from happening is our primary concern. prefer to do business with suppliers able to guarantee The lost time injury rate (LTIR) for our staff and contractors superior quality and a high degree of process safety based combined improved to 1.4 per million of hours worked on sustainable operations. (2008: 1.7). The number of accidents related to the number of hours worked by employees (TIR) unfortunately showed People a rise to 6.5 accidents per million of hours worked in 2009 Vopak invests in long-term relationships with employees and (2008: 5.8). For this reason, a great deal of attention was offers them a work environment that appeals to their talents devoted to prevention during the annual global SHE day. and skills. Additionally, we seek to forge strong relationships The need for prevention was tragically underscored by a with our employees by giving ample attention to matters fatal accident involving a subcontractor working on the they consider important in their work. Examples include job construction of the terminal in Jakarta in the year under satisfaction, personal development, competitive terms of review. employment and a good balance between work and private life. Planet Vopak operates 79 terminals in 31 countries, concerning Vopaks entrepreneurial corporate culture is one of its thousands of people and large plots of land. This brings with distinctive features. It is characterized by clear targets it responsibilities for the surroundings, not just with respect and performance measurement as well as by informal to soil, water and air, but also towards the local communities dealings with employees. The Vopak spirit, the loyalty and and neighbors. Vopak aims to be a reliable neighbor. the enthusiasm pervade the entire business, even when there are so many different nationalities. We take pride in Our objective is to prevent product spills and, where these valuable elements of our corporate culture and will do possible, further reduce emissions, including those of everything to maintain and strengthen them. gas and odour. In pursuing this objective, we consistently adhere to guidelines set out in operating licences, legislation Vopak endorses the principles of the United Nations’ and our own global standards. Vopak acknowledges International Labour Organisation (ILO), as well as the that taking measures aimed at curbing emissions may United Nations’ Universal Declaration of Human Rights. It sometimes be in conflict with energy consumption, as has set out these and other principles in the Vopak Code of some environmental measures require the use of energy. Conduct, which was expanded in 2009. This has widened We aim to strike the perfect balance in this respect. the scope for applying our principles to include subsidiaries, joint ventures and associates, as well as contractors, Standardization suppliers and other partnering parties as part We are standardizing our approach globally and are mapping of our supply chain responsibility. out the impact our operations may have on the environment. This helps us address the question of how to maximize Local projects our management of that impact, including our operations’ When practising corporate social responsibility, Vopak carbon footprint. We have entered into a commitment to implements a range of projects benefiting local communities develop a sound waste management system and maximize across the globe. They vary from educational projects for our reduction in energy consumption, soil contamination, local communities to creating or improving infrastructure air and surface water pollution and water consumption to near our terminals. We consider maintaining pleasant stimulate biodiversity on and around our terminals. relationships with those living close to our terminals a self- evident necessity. Product spills The number of spills that occur at our tank terminals is an Safety and absenteeism important measure of our safety and environmental care. Vopak has a long track record in providing programs, Following increases in previous years, the number of spills procedures and training aimed at guaranteeing our fell significantly in 2009, to 71 (2008: 103). The volume – Royal Vopak Annual Report 2009 31


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    – of the spills decreased likewise. In the year ahead, we Number of spills reported will relentlessly pursue the global implementation of our standards, as well as taking preventive measures. 0 12 Carbon emissions As part of our sustainability policy, we extend the scope of 90 our reporting to include energy consumption - both direct and indirect consumption - and carbon emissions. While we hardly generate CO2 from operating processes, the energy we use during our processes does. Energy is used mainly 60 for pumping, heating and cooling the products we store in our tanks. In addition, we use energy to treat waste water and to power systems that capture vapors. 30 We have observed decreases both in energy consumption and in CO2 emissions per cubic meter of storage capacity. They result from our greater efforts aimed at working more 0 energy-efficiently, which we will continue in the years 05 06 07 08 09 20 20 20 20 20 ahead. – Profit Direct and indirect energy use of subsidiaries Stakeholders increasingly judge a company on whether it Total energy in megajoule per cbm storage capacity presents itself as sustainable, assuming corporate social 0 responsibility. This means that sustainable operations, 30 besides generating the financial profits required to continue as a going concern, also generate intangible 0 25 gains. It also provides us with the opportunity to distinguish ourselves from the competition. Expectations are that 0 20 sustainable companies in particular will be successful in the 21st century. 0 15 Our business operations are geared towards long-term trends. For this and other reasons, Vopak’s investments 0 10 target sustainable activities that ensure profitability for many 50 Our aspirations for energy, water and waste Vopak aspires to curb its own energy and water consumption, reduce 0 its emissions to soil, air and surface water and minimize waste in the 07 08 09 broadest sense of the word. 20 20 20 – For 2010, we have set ourselves the target of reducing CO2 emissions Direct and indirect carbon emission of subsidiaries per cubic meter of storage capacity by 5%. Kg CO2 per cbm storage capacity As part of our waste reduction efforts, we have launched a pilot project 25 for waste flows at two terminals. The aim is to make a clear distinction between waste prevention and reuse, and land filling. If the project shows that significant reductions can be made, we plan to roll it out 20 across other terminals. A further initiative that will be launched in 2010 concerns water 15 management issues at our terminals. As part of our water consumption reduction efforts, we have started mapping out our 10 water flows (consumption and production) at each terminal. The aim is to make a clear distinction between clean water and contaminated process water, in order to treat the latter in state-of-the-art plants. 5 A start will be made at our largest terminals, such as those in the Bahamas and Rotterdam Europoort (the Netherlands). 0 7 8 09 0 0 20 20 20 – Royal Vopak 32 Annual Report 2009


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    decades to come. Accordingly, tools such as investments, Annual contacts operating efficiency improvements, maintenance and highly We maintain contacts every year with a great variety sophisticated techniques contribute to ongoing availability of communities, including our local neighbors, non- of storage capacity, while also making our operations more governmental organisations, sustainability organizations sustainable. Likewise, preventing incidents and spills and and ministries in the countries in which we operate. reducing waiting times for vessels contribute to customer Besides maintaining direct contacts with these satisfaction. stakeholders, we undertake various surveys throughout Programs aimed at reducing our consumption of energy the year. The aim of these sustainability and annual and natural resources and avoiding spills, incidents and employee and customer satisfaction surveys is to verify emissions will result in lower costs. the implementation of the suggestions, comments and recommendations we have received at operational and Dialogue with stakeholders policy levels. Vopak assumes its responsibility by entering into a dialogue with its various stakeholders, such as customers Our aspirations for 2010 and suppliers. We do so because we realize that we can To make the best possible use of our stakeholders’ input, only maintain our carefully built competitive and market we use a rotation system based on the relevance of the positions if we exercise care in our dealings with customers, stakeholders and subject matter. The results of these in our service provision and in our attitude towards the dialogues have a direct effect on the issue at hand. surroundings and communities in which we operate. With the support of Lean management, due for Vopak seeks to pursue an open information policy towards implementation commencing in 2010, Vopak is committed stakeholders who take an interest in our company. In line to reducing all types of waste. Waste means everything with that openness and transparency, we wish to conduct that does not add value to the customer, varying from spills a well-structured dialogue with our stakeholders about our to long waiting times for vessels. As we curb waste, the sustainability policy. The outcome is used to refine that quality of our services increases and costs go down. policy, since Vopak attaches great importance to the views of its stakeholders in formulating further sustainability We will be starting a pilot project to map out and classify targets and policy measures. Furthermore, we value waste in 2010. Our long-term objective is not only to reduce input from stakeholders with respect to the sustainability waste volumes, but also to promote reuse both in and dilemmas that may occur in our everyday practice. outside our own operations. Daily contacts Customers, suppliers and employees meet to share important information every day. In addition, various audits are held on an annual basis, both by Vopak itself (Corporate Insurance, Corporate Internal Audit, Terminal Health Assessment, Post Implementation Reviews) and by our customers and various authorities. These audits aim to assure security for internal purposes, confirm the integrity of our terminals and processes, and pre-assess implementation plans. Furthermore, annual in-depth surveys are held among our customers and third parties who serve our customers at our terminals. These audits and surveys provide a continuous source of recommendations for improving our safety, services and operations. Regular contacts We maintain regular contacts with neighbors, local and other authorities and investors. Organizing around 300 individual meetings, presentations, road shows and other events enables us to demonstrate our aim to be transparent towards all these target groups. In addition, we organize regular communications through webcasts and by using our website. – Royal Vopak Annual Report 2009 33


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    Introduction and timetable Our principles At Vopak, we have thought carefully about our sustainability activities and we wish to implement our plans at the right Vopak and sustainability time and in the right way. For this reason, we have drawn To Vopak, sustainability means generating added value for all its up the Vopak Sustainability Strategy, which will be rolled out stakeholders without causing unacceptable social or environmental throughout the Group in phases, as follows. impacts. We are committed to minimizing our energy and water consumption and reducing emissions to soil, air and surface water. Phase 1. Defining basic processes We are also aware of the need to minimize any negative impact on (completed in 2009) communities living close to our operations whilst maximizing positive – Laying down Vopak’s Sustainability Policy in impacts wherever possible. We do this by concentrating on the issues a Vision & Mission Statement and a Policy set out below. document, including the short-term targets. – Preparing a reporting manual. Integrity and ethics – Preparing external reports in accordance with GRI At Vopak, we have a responsibility to our investors, employees and level C. business partners to operate ethically and with integrity in every facet – Developing a step-by-step implementation plan. of our activities. Integrity has been and will continue to be key to – Drawing up a detailed timetable for Phase 2. establishing and maintaining our good reputation. Vopak’s business principles, based on integrity, are laid down in the Vopak Code of Phase 2. Embedding the policies Conduct, which is available on our website. (2009-2011) – Implementing the Vopak Sustainability Policy and Human rights our measurement systems. Vopak respects human rights as described in the United Nations’ – Extending the scope of our external reporting to Universal Declaration of Human Rights. We have a responsibility for include GRI level B. ensuring that all of our subsidiaries likewise respect human rights – Setting long-term quantitative sustainability whilst conducting business in our name. objectives. – Drawing up a detailed timetable for Phase 3. Fair treatment of employees Vopak endorses the principles of the United Nations’ International Phase 3. Realizing our ambitions Labour Organisation (ILO). We have long been committed to (2009-2012) providing a safe and healthy working environment for employees. This – Final roll-out of the sustainability strategy. commitment is deeply rooted in our day-to-day activities, policies and – Continuous monitoring of compliance and governance structures. assessment of results. – Ongoing improvement of reporting, based on GRI Communities guidelines. Vopak is committed to engaging with the communities living close to our operations. We work to minimize any negative impact of our Website operations to an acceptable level. We also aim to support employees, The Vopak website (www.vopak.com) always provides their families and local communities by providing assistance and the most recent status update as well as our objectives expertise whenever reguired. and ambitions. Sustainable suppliers and customers Vopak works with customers and suppliers to maintain long-term partnerships and ensure continuous improvement in our approach to sustainability. We aim to be the supplier of choice based on our service quality and our sustainability initiatives. Sustainable services Vopak develops its services in accordance with stringent safety and environmental standards and in collaboration with the local authorities in the areas in which it operates. By continuously assessing and improving the condition of our terminals, we are able to maintain the highest level of quality for our customers. – Royal Vopak 34 Annual Report 2009


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    Financial performance Revenues In 2009, Vopak generated revenues of EUR 1,001.1 million, an 8% increase on 2008 (EUR 923.5 million), including a currency translation gain of EUR 3.3 million. Adjusted for deconsolidations in 2008, all divisions contributed positively to the increase in revenues, which was caused by a combination of increased capacity at existing terminals, development of new terminals and an increase in revenue per cubic meter of storage capacity as a result of positive rate adjustments. Revenues increased despite the effects of deconsolidations (Vopak Barging and Pakterminal) and divestments (Hemiksem) in 2008. Contracts with original durations longer than 1 year account for 83% of the contract portfolio (2008: 80%). Group operating profit Group operating profit rose by 21% to EUR 391.1 million (2008: EUR 322.2 million), including a currency translation gain of EUR 2.3 million. Adjusted for exceptional items group operating profit rose by 20% to EUR 385.3 million (2008: EUR 320.4 million). This improvement is the result of the continued strategic focus of all divisions on growth in storage capacity at existing terminals, the development of new terminals, the additional demand of customers and improvements in operational efficiency. Group operating profit before depreciation and amortization (EBITDA) including the net result of joint ventures and associates and excluding exceptional items rose by 20% to EUR 513.4 million (2008: EUR 429.3 million). Increased capital requirements because of investments in new storage capacity caused ROCE, excluding exceptional items, to decrease to 20.2% (2008: 21.6%). Earnings per share rose, thanks to the significant improvement in group operating profit as well as favorable variable interest rates. Exceptional items recognized in 2009 totaling EUR 5.8 million partly relate to impairment charges for Vopak’s interests in the joint venture in Xiamen (China) and in the real estate joint venture for the redevelopment of a former Vopak office location in Rotterdam, the Netherlands. Further exceptional items in 2009 relate to profits on the sale of land (UK) and a terminal in Basle (Switzerland). Operating costs not allocated to the divisions and adjusted for exceptional items amounted to EUR 39.1 million (2008: EUR 29.3 million). The increase is mainly due to higher pension costs, certain project-related charges and higher expenses following a negative indemnity resulting from Vopak’s captive reinsurance company, which carries part of the insured risks. – Royal Vopak Annual Report 2009 35


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    – Net finance costs Revenues The net finance costs amounted to EUR 45.7 million (2008: EUR 37.6 million). The increase is mainly caused by higher In EUR millions 2009 2008 ∆% net interest expenses due to higher interest-bearing loans necessary to finance the expansion program. The average Chemicals Europe, Middle East & Africa 312.7 313.1 – interest rate over the period remained 5.4%. Oil Europe, Middle East & Africa 269.5 251.7 7 The fixed-to-floating ratio of the long-term interest-bearing Asia 206.2 166.3 24 loans, including interest rate swaps, amounted to 93% North America 131.7 118.2 11 versus 7% per 31 December 2009 (31 December 2008: Latin America 77.9 69.9 11 61% versus 39%). Non-allocated 3.1 4.3 Revenues 1,001.1 923.5 8 Income tax The income tax expense for 2009 amounted to EUR 68.9 million (2008: EUR 54.9 million). The effective – tax rate for 2009 was 19.9% (2008: 19.3%). The effective Group operating profit tax rate for 2008 included an exceptional item with an effective tax rate impact of 2.9%. No exceptional tax In EUR millions 2009 2008 ∆% items have been recognized for 2009. The decrease of the effective tax rate, excluding exceptional items in Group operating profit including 2008 (22.2%), to the effective tax rate for 2009 (19.9%) exceptional items 391.1 322.2 21 includes the effect of the release of deferred tax liabilities -/- Exceptional items 5.8 1.8 in Singapore due to a tax rate reduction and a larger share Group operating profit excluding of earnings before taxation eligible for participation exceptional items 385.3 320.4 20 exemption. -/- Group operating profit of disposed activities 1.0 0.3 Net profit attributable to holders of ordinary shares + Currency translation profit 2.3 Net profit attributable to holders of ordinary shares, ex- Group operating profit 1) 384.3 322.4 19 cluding exceptional items, rose by 20% to EUR 242.7 million (2008: EUR 202.1 million). Net profit rose as a result of 1) Pro forma group operating profit for 2008 computed at 2009 exchange rates the higher group operating profit, partly offset by higher financing costs in the period. – Earnings per ordinary share, excluding exceptional items, Group operating profit excluding exceptional items grew by 19% to EUR 3.84 (2008: EUR 3.24). During 2009, Vopak increased the number of shares outstanding after In EUR millions 2009 2008 ∆% the issue of 73% of the 2008 dividend in stock, renewed its cumulative financing preference share program and Chemicals Europe, Middle East & Africa 91.2 89.7 2 concluded in August and December respectively a Oil Europe, Middle East & Africa 135.3 108.1 25 SGD 210 million Private Placement and a USD 680 million Asia 127.5 95.5 34 Private Placement with fixed interest rates. These financing North America 46.1 34.4 34 activities provide a solid basis to enable a successful Latin America 24.3 22.0 10 execution of Vopak’s growth strategy in the coming years, Non-allocated - 39.1 - 29.3 but will besides the increase in the outstanding shares also Group operating profit excluding result in higher financing costs. exceptional items 385.3 320.4 20 Depreciation and amortization 128.1 108.9 18 Although the EPS development in 2010 will be positively Group operating profit before depreciation affected by the expected EBITDA growth the financial and amortization (EBITDA) 513.4 429.3 20 consequences of these long-term focused financing activities will weigh on the EPS development. – Royal Vopak 36 Annual Report 2009


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    Non-current assets – Total non-current assets increased to EUR 2,730.0 million Group operating profit and ROCE (31 December 2008: EUR 2,278.6 million). In 2009, Average total investments amounted to EUR 534.8 million, of capital which EUR 455.4 million was invested in property, In EUR millions EBIT employed ROCE plant and equipment and the remainder included primarily investments in joint ventures and associates Chemicals Europe, Middle East & Africa 92.1 481.3 19.1% (2008: EUR 799.8 million, of which EUR 456.0 million Oil Europe, Middle East & Africa 140.7 407.8 34.5% was invested in property, plant and equipment). Of Asia 124.6 717.1 17.4% the investments in property plant and equipment North America 46.1 242.3 19.0% EUR 173.9 million was invested in expansions at existing Latin America 24.3 99.9 24.3% terminals (2008: EUR 268.8 million). Please refer to the Non-allocated - 36.7 - 12.1 details of storage capacity developments on page 28 and 29 for further details of the commissioned and Group operating profit 391.1 1,936.3 20.2% approved growth plans. Shareholders’ equity Shareholders’ equity rose by EUR 319.2 million to – EUR 1,252.2 million (31 December 2008: EUR 933.0 Vopak consolidated including proportionate consolidation of joint million). The increase mainly came from the addition of ventures in tank storage activities the net profit for the year and the issuance of new shares, less a dividend payment in cash of EUR 20.5 million. A detailed overview can be found in the Consolidated In EUR millions 2009 2008 Statement of Changes in Equity on page 80. Income statement Interest-bearing loans Revenues 1,220.5 1,067.9 As a result of the investment program, net interest-bearing Group operating profit before depreciation debt rose to EUR 1,017.7 million (31 December 2008: and amortization (EBITDA) 582.0 474.0 EUR 996.7 million). The Net debt : EBITDA ratio decreased Group operating profit 419.8 337.5 to 2.23 (2008: 2.54), which is well below the maximum ratio Net profit attributable to shareholders 251.2 213.2 agreed with lenders. Net profit attributable to holders of ordinary shares 247.6 212.0 In 2009, Vopak issued two new senior unsecured debt programs: a US Private placement of USD 680 million Balance sheet and an Asian Private Placement of SGD 210 million. Non-current assets 3,091.5 2,598.1 The programs further enhanced the maturity profile of Current assets 477.9 370.3 the outstanding debt and provide sufficient flexibility under Total assets 3,569.4 2,968.4 the current revolving credit facility to enable the refinancing of the regular repayments under the existing private Non-current liabilities 1,758.7 1,401.0 placement programs up to and including 2011. Current liabilities 477.9 558.4 Total liabilities 2,236.6 1,959.4 As per 31 December 2009, EUR 983.4 million was drawn under US Private Placement programs with an average Total equity 1,332.8 1,009.0 remaining term of 8.8 years. A further EUR 103 million was drawn under the Asian Private Placement program with an Financial ratio’s average remaining term of 4.7 years. The revolving credit Interest cover 10.0 9.9 facility of EUR 1.0 billion, with a remaining term of 2.5 years, Net debt : EBITDA 2.26 2.70 is fully available. During 2010, regular repayments of long- term loans will be limited to EUR 25.1 million. – Royal Vopak Annual Report 2009 37


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    – Pensions Net investments by division Over 2009 the Vopak pension schemes have shown a mild recovery from the decrease of the plan assets values in In EUR millions 2009 2008 2008. The local cover ratio of the Dutch pension scheme, covering 83% of Vopak’s pension obligations, increased in Chemicals Europe. Middle East & Africa 107.7 121.1 2009 from 97% to approximately 108%. This increase was Oil Europe, Middle East & Africa 114.2 174.3 mainly caused by the positive return of almost 11% and Asia 112.3 228.6 the increased and one-off contribution in the recovery plan. North America 27.6 123.8 Based on the strategic asset allocation in 2010, as decided Latin America 50.4 20.7 on by the trustees of the Dutch pension scheme, the Non-allocated 18.7 13.9 required cover ratio amounts to approximately 113%. Net investments 430.9 682.4 With a cover ratio of 108%, the Dutch pension scheme is well ahead of expectations in the recovery plan. This cover ratio includes the effect of a decision by the trustees of – the pension scheme to set aside a provision equaling 2% Net investments of pension obligations in respect of the expected increase in future life expectancy based on recent figures from the In EUR millions 2009 2008 Dutch Central Bureau of Statistics. Intangible assets 5.8 5.7 Based on the financial agreement between Vopak and the Property, plant and equipment 455.4 456.0 Dutch pension scheme, the contribution for 2010 to the Joint ventures and associates 36.3 40.4 Dutch pension scheme remains the maximum of 30% of Loans granted 21.4 109.1 total salaries. The financial agreement or recovery plan no Acquisition of subsidiaries including goodwill 1.2 59.1 longer holds obligations for one-off contributions. Based Acquisition of joint ventures 7.2 127.8 on the situation at the end of 2009, the trustees of the Other non-current assets 7.5 1.7 pension scheme have decided to grant no indexations Investments 534.8 799.8 as per 1 January 2010. Intangible assets – 0.2 The other Vopak pension schemes have shown a Property, plant and equipment 12.4 2.6 comparable recovery in 2009 from the decrease of Joint ventures and associates – 3.4 the plan assets value in 2008. Loans granted 75.2 66.9 Subsidiaries – 0.2 Under IFRS the adverse developments in 2008 have led to Assets held for sale 16.3 44.1 an increase of the expense for defined benefit plans in 2009 Disposals 103.9 117.4 with EUR 13.7 million to EUR 19.0 million. This increase is a direct effect of the lower value of plan assets at the end of Net investments 430.9 682.4 2008 combined with a higher amortization of unrecognized actuarial losses. The expected pension costs for defined benefit plans in 2010 amount to EUR 9.8 million. – Royal Vopak 38 Annual Report 2009


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    Dividend proposal – A dividend of EUR 1.25 per ordinary share, an increase of Funding 14% (2008: EUR 1.10), payable in cash, will be proposed to the Annual General Meeting of Shareholders of 27 April In EUR millions 2009 2008 2010. Adjusted for exceptional items, the payout is 33% of earnings per ordinary share (2008: 34%). Cash and cash equivalents 189.4 49.3 Non-current portion of interest-bearing loans - 1.165.2 - 922.1 Share split Current portion of interest-bearing loans - 25.1 - 50.0 It will be proposed to the Annual General Meeting of Bank overdrafts - 16.8 - 73.9 Shareholders of 27 April 2010 to approve a share split in a Net interest-bearing debt - 1.017.7 - 996.7 1:2 ratio. Considerations underlying this proposal are various requests, notably from retail shareholders. Derivative financial instruments (currency) - 12.7 - 18.7 Credit-replacement guarantees - 30.7 - 19.8 Outlook Net debt for ratio calculation - 1,061.1 - 1,035.2 – Projects under construction will add 3.0 million cbm of storage capacity in the years 2010, 2011 and 2012. Net debt : EBITDA 2.23 2.54 The total investment for Vopak and partners in Interest cover 10.4 10.9 these projects involves capital expenditure of some EUR 1.6 billion, of which Vopak’s total remaining cash – spend will be some EUR 0.4 billion. Abridged cash flow statement – For 2010 Vopak expects Group operating profit before depreciation and amortization (EBITDA) to grow between In EUR millions 2009 2008 5-10%. Although the expected EBITDA growth will contribute positively to the EPS development in 2010, Cash flows from operating activities (gross) 453.6 386.9 the completed long term financing activitities in 2009 Net finance costs paid and received - 38.8 - 33.1 will weigh on the EPS development due to the increase Income tax paid - 41.5 - 37.1 in outstanding shares and higher financing costs. Cash flows from operating activities (net) 373.3 316.7 – Based on its growth strategy Vopak is well positioned to realize a Group operating profit before depreciation Investments - 534.8 - 799.8 and amortization (EBITDA) between EUR 625-700 million Disposals 103.9 117.4 in 2012. Cash flows from investing activities - 430.9 - 682.4 Cash flows from financing activities 254.2 232.6 Net cash flows 196.6 - 133.1 – EBIT in 2009 by currency USD 21% SGD 21% EUR 34% Other 24% – Exchange rates USD SGD Per EUR 1.00 2009 2008 2009 2008 Average exchange rate (translation rate income statement) 1.39 1.47 2.02 2.08 Year-end exchange rate (translation rate balance sheet) 1.43 1.40 2.01 2.00 – Royal Vopak Annual Report 2009 39


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    The World of Vopak – – North America Latin America 10 terminals, 3 countries 13 terminals, 7 countries 5,741,100 cbm storage capacity 915,500 cbm storage capacity 1 Bahamas 11 Brazil Vopak Terminal Bahamas Vopak Brazil - Alemoa Terminal 2 Canada 12 Brazil Vopak Terminals Canada - Hamilton Vopak Brazil - Aratu Terminal 3 Canada 13 Brazil Vopak Terminals Canada - Montreal Vopak Brazil - Ilha Barnabé Terminal 3 4 United States 14 Brazil 6 Vopak Terminal Deer Park União/Vopak Armazéns Gerais 7 2 9 5 United States 15 Chile 10 Vopak Terminal Galena Park Vopak Chili - San Antonio Terminal 8 19 6 United States 16 Colombia 21 4-5 1 Vopak Terminal Long Beach Vopak Colombia - Barranquilla Terminal 20 7 United States 17 Colombia Vopak Terminal Los Angeles Vopak Colombia - Cartagena Terminal 16 23 8 United States 18 Ecuador 17 Vopak Terminal Savannah Vopak Ecuador 9 United States 19 Mexico Vopak Terminal North Wilmington Vopak Mexico - Altamira Terminal 18 10 United States 20 Mexico Vopak Terminal South Wilmington Vopak Mexico - Coatzacoalcos Terminal 21 Mexico 12 Vopak Mexico - Veracruz Terminal 22 22 Peru Vopak Peru - Callao Terminal 13 11 23 Venezuela Vopak Venezuela - Puerto Cabello Terminal 14 Hub location 15 Terminal – Europe, Middle East & Africa 31 terminals, 11 countries 15,269,100 cbm storage capacity 24 Belgium 33 The Netherlands 41 Spain 50 South Africa Vopak Terminal ACS - Antwerp Vopak Terminal Botlek (Noord) - Terquimsa - Barcelona Terminal Vopak Terminal Durban Rotterdam 25 Belgium 42 Spain 51 Sweden Vopak Terminal Eurotank - Antwerp 34 The Netherlands Terquimsa - Tarragona Terminal Vopak Terminal Gävle Vopak Terminal Botlek (Zuid) - Rotterdam 26 Belgium 43 Saudi Arabia 52 Sweden Vopak Terminal Linkeroever - Antwerp 35 The Netherlands SabTank - Al Jubail Vopak Terminals Gothenburg Vopak Terminal Chemiehaven - Rotterdam 27 Germany 44 Saudi Arabia 53 Sweden Vopak Dupeg Terminal Hamburg 36 The Netherlands SabTank - Yanbu Vopak Terminal Malmö location Neuhof and location Waltershof Vopak Terminal Europoort - Rotterdam 45 United Kingdom 54 Sweden 28 Estonia 37 The Netherlands Vopak Terminal Ipswich Vopak Terminal Södertälje Vopak E.O.S. - Tallinn Vopak Terminal Laurenshaven - 46 United Kingdom Rotterdam 29 Finland Vopak Terminal London Vopak Terminal Hamina 38 The Netherlands 47 United Kingdom Vopak Terminal TTR - Rotterdam 30 Finland Vopak Terminal Teesside - Vopak Terminal Mussalo - Kotka 39 The Netherlands Middlesbrough Vopak Terminal Vlaardingen 31 The Netherlands 48 United Kingdom Maasvlakte Olie Terminal - Rotterdam 40 The Netherlands Vopak Terminal Windmill Vopak Terminal Vlissingen 32 The Netherlands 49 United Arab Emirates Vopak Terminal Amsterdam Vopak Horizon Fujairah – Royal Vopak 40 Annual Report 2009


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    30 51 29 28 54 52 24-26 47 45 31-40 53 48 27 46 41 42 70 67 68 61 65 59 62 58 69 66 60 63 43 49 44 73 78 79 71 72 74-77 64 55 50 56-57 – Asia & Australia 25 terminals, 10 countries 6,413,500 cbm storage capacity 55 Australia 65 Japan 74 Singapore Vopak Terminal Darwin Nippon Vopak - Kawasaki Terminal Vopak Singapore - Banyan Terminal 56 and 57 Australia 66 Japan 75 Singapore Vopak Terminal Sydney - location A and B Nippon Vopak - Kobe Terminal Vopak Singapore - Penjuru Terminal 58 China 67 Japan 76 Singapore Vopak Shanghai - Caojing Terminal Nippon Vopak - Moji Terminal Vopak Singapore - Sakra Terminal 59 China 68 Japan 77 Singapore Vopak Terminals Shandong Lanshan Nippon Vopak - Nagoya Terminal Vopak Singapore - Sebarok Terminal 60 China 69 Japan 78 Thailand Vopak Terminal Ningbo Nippon Vopak - Yokohama Terminal Thai Tank Terminal 61 China 70 Korea 79 Vietnam Vopak Terminal Tianjin Vopak Terminals Korea - Ulsan Vopak Vietnam 62 China 71 Malaysia Vopak Terminal Zhangjiagang Kertih Terminals 63 China 72 Malaysia Xiamen Paktank Vopak Terminal Pasir Gudang 64 Indonesia 73 Pakistan Vopak Terminal Merak Engro Vopak Terminal – Royal Vopak Annual Report 2009 41


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    Review by Division


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    Chemicals Europe, Middle East & Africa (CEMEA) Market trends and financial results – 75,000 cbm commissioned in Vlaardingen, the “The CEMEA division stores a large variety of products, Netherlands, for storage of biofuel components. such as oleochemical products, biofuels, fuel components – Capacity expanded by over 156,000 cbm in Rotterdam, and vegetable oils. Together, these products account for Botlek, the Netherlands for bio-ethanol. roughly half of the division’s business, the other half being the remaining chemical products. Study into new terminal in Turkey “We are currently studying options for developing a terminal Early 2009 witnessed a substantial drop in demand for for storing liquid chemicals and mineral and vegetable oil storage of chemicals and oleochemicals due to the financial products at the strategic location between Europe and Asia, and economic crisis. Nevertheless, the operating profit on the Turkish coast of the Sea of Marmara.” increased slightly to EUR 91.2 million (2008: 89.7 million). This rise can be partly ascribed to the storage of other Safe and sustainable conduct products. Fears in the financial markets that the CEMEA division might be susceptible to cyclical trends proved to Red Alert! be unfounded in 2009, which was a factor in a number “The initiative we took two years ago in the area of of subsequent upward reviews of the company’s profit process safety, focusing specifically on preventing minor forecasts in the past year. fires and spills, which caused them to be halved in terms of occurrences and volumes, was given a fresh impetus The biofuels boom seen in the past few years levelled through the Red Alert! campaign. This safety awareness off somewhat as market forces normalized following the campaign highlighted conduct, emphasizing the importance European Commission’s clear statement on regulations to employees of concentration in everything they do. governing biofuels and as shifts occurred on the supply Raising awareness in this manner resulted in an upward side. Rather than import flows from Asia and Latin America, trend in our performance in the fields of process safety more intra-European market flows emerged, presenting and personal safety in 2009.” new opportunities. SHE training programme Expectations are for the chemicals market in the EMEA “In CEMEA, a SHE training program was developed that region to gradually return to stability once the recession is highlights the human factor in the safety theme in the over. The growing geographical spread between locations broadest sense of the word. If you understand why people where there is demand for chemicals and those where act in the way they do, you will be able to exert a positive there is supply offers Vopak opportunities. A prime example influence on those actions. Keywords are discipline and of such imbalance is the trend seen in the Middle East, never ceasing to point out the importance of safety and where much new production capacity will be commissioned professional and careful conduct. The training program over the coming years. This concerns chemicals previously started in 2009 at many terminals and we will be keeping a produced as well as consumed in Europe. This trend gained close eye on it in the coming period.” prominence in 2009, offering us positive perspectives, given that we own tank storage facilities in ports with deepwater Sustainability access. “The sustainability belief has already trickled through into many aspects of our business operations, with energy Capacity expansion savings and much-used energy programmes being cases – Expansion at the Belgian Left Bank terminal of in point. Based on an energy balance, we are taking a 40,000 cbm. step towards improving yields, for instance by searching – 40,000 cbm new capacity added in Teesside, UK. for heat leaks using infrared cameras or by bringing down – Royal Vopak 44 Annual Report 2009


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    Highlights – Substantial drop in demand chemical products due to crisis – Slight increase of operating profit – Additional storage capacity in the United Kingdom, Belgium and the Netherlands – Growing geographical imbalances offer opportunities Key figures In EUR millions 2009 2008 Revenues 312.7 313.1 Operating profit before depreciation and amortization (EBITDA) 131.4 128.2 Operating profit (EBIT) * 91.2 89.7 Average gross capital employed 865.6 726.7 “Despite drop in demand Average capital employed 481.3 377.5 ROCE 19.1% 24.9% of chemical products a Storage capacity (cbm) 4,283,700 3,984,200 Occupancy rate 93% 96% stable operating profit * Excluding exceptional items was realized.” the temperature of the steam we use to flush our tanks. Contract position The return on those efforts is a demonstrable reduction in energy consumption on the sites.” Vopak Chemicals Netherlands “In Vopak Chemicals Netherlands, a plan is currently > 3 years under development for further improving safety and raising efficiency and service levels by making significant 1 - 3 years investments in the Dutch chemicals terminals. In the years ahead, the planned investments will result in a few < 1 year dozen jobs in Chemicals Netherlands being shed. This is considered to be necessary in order to secure a better long- term competitive position for Vopak Chemicals Netherlands in view of the uncertainties inherent in the Dutch market. The plan detailing this large-scale project will be completed in the first half of 2010.” Customers and service “The response to our annual customer satisfaction survey was overwhelmingly positive. To follow up on the outcome, we held in-depth discussions with our customers in order to gain an understanding of the exact issues and requirements that lie behind the figures. Based on those discussions, we prepared and implemented an action plan, and our realistic expectation is that it will yield the first results in the coming period.” – Kees van Seventer, Division President CEMEA – Royal Vopak Annual Report 2009 45


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    Oil Europe, Middle East & Africa (OEMEA) Market trend Vopak Terminal Westpoort, which will be built using the most “Demand for oil storage remained robust. Although global sustainable technologies available, will mainly store, blend demand for oil dropped by about 3% in 2009, demand and transship transport fuels such as gasoline, diesel, gas for transport and storage was on the rise, due to growing oil, their components and biofuels. In 2009 the construction geographical imbalances. The operating profit rose more of the first phase of 620,000 cbm has started. The second than 25% to EUR 135,3 million, driven by the sustained phase of 570,000 cbm will start early 2010.” strong demand for tank storage and capacity expansions. This trend is expected to continue over the next few years, Sale of Basle terminal as some of the refinery activities will move to the Middle “In late 2009, Vopak sold the terminal in Basle, Switzerland. East. There is also a trend of national oil companies trying This river-based inland terminal in Basle has a limited to acquire international market positions. Tank storage strategic fit with Vopak’s global network strategy focused capacity gives them physical access to regional and on owning and operating marine-based tank storage local markets to which they can supply their products. terminals in key locations with deep water access facilities.” Consequently, a significant increase can be noted in the interest on the part of such national oil companies in storing Expansion of Agencies network their products at Vopak. This leads to a considerable growth “With a view to further reinforcing the market in in Vopak’s service offering. Therefore, Vopak’s focus will northwestern Europe, Vopak Agencies acquired John T. continue to be on national and global oil companies alike.” Essberger’s trading network, thus expanding its network with offices in Hamburg, Stade, Bremen, Wilhelmshafen Strong market demand drives growth in and Rostock, Germany.” storage capacity “Throughout the EMEA region, many projects are under Sustainability construction that will yield another 1.7 million cbm of “Sustainability is important in the OEMEA division. The storage capacity over the next few years. A number of large- theme is top of the agenda for all projects and terminal scale expansions and/or modernizations are the following: operations. A great deal of attention and investments focus – The expansion of Vopak’s usage rights in the on curbing emissions at new (see Westpoort terminal) and Maasvlakte Oil Terminal in Rotterdam, the Netherlands current terminals, and on environmental protection, such as by 360,000 cbm to over 1 million cbm. fighting odor, reducing vapor pollution and saving energy. All – 160,000 cbm is being added to Vopak Terminal Europoort efforts yield measurable results, for instance reductions in in Rotterdam, the Netherlands. energy needs. Over the next few years, Vopak will continue – The capacity of the terminal in Gothenburg, Sweden, to concentrate on implementing sustainable improvements.” was expanded by 60,000 cbm. In addition, one of the four terminal locations in Gothenburg, Skarvik 2, is being Staff entirely modernized and expanded by 20,000 cbm. “In 2009, a competency management pilot was – In early 2009, Vopak E.O.S. in Tallinn, Estonia, implemented throughout the division. The project not only commissioned another 111,000 cbm of storage capacity. centers on a staff member’s requisite functional skills on a – Expansion of the SabTank terminal in Yanbu (Saudi Arabia) duty-by-duty basis, but also on the personal capacities and by 125,000 cbm.“ competencies required to carry out the duty in question adequately within a social context. As a result, excellence Construction of sustainable terminal in Amsterdam in customer approach is also given extra attention. In this “In May, the decision was made to build a new oil storage respect, the organization’s development and strategy terminal in the port of Amsterdam, the Netherlands, (customer leadership) go hand in hand with our staff’s which is the principal gasoline trading hub in Europe. personal development.” – Royal Vopak 46 Annual Report 2009


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    Highlights – Robust demand for storage of oil products – Construction of new terminal in Amsterdam, the Netherlands – Many projects are under construction throughout the EMEA region – Growth of services provided to national oil companies Key figures In EUR millions 2009 2008 Revenues 269.5 251.7 Operating profit before depreciation and amortization (EBITDA) 166.6 136.4 Operating profit (EBIT) * 135.3 108.1 Average gross capital employed 677.5 571.5 “Increasing geographical Average capital employed 407.8 311.8 ROCE 34.5% 36.3% imbalances drive demand Storage capacity (cbm) 10,985,400 11,067,100 Occupancy rate 95% 95% for tank storage.“ * Excluding exceptionals Operational efficiency “Vopak’s focus on efficiency improvements and effective cost management was stepped up. On the basis of the Contract position Lean-methodology, Vopak made a huge effort to create a service-based culture that never ceases to consider process improvement. This is not merely about cost reductions, but mainly about adopting and embedding another culture or mindset in the company proper through its people.” > 3 years Customers and service 1 - 3 years “Vopak invests not only in adding capacity, but also in modernizing, modifying and upgrading the infrastructure < 1 year on its locations. With a view to its ongoing service improvement, Vopak devotes a great deal of attention to training courses for all commercial and customer service staff on all locations, so that its service offering continues to be in line with its customers’ expectations to the extent possible.” – Frank Erkelens, Division President Oil EMEA – Royal Vopak Annual Report 2009 47


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    Asia Continued growth the new storage terminal for oil products was nearly “The crisis has made the potential global growth for completed, providing a capacity of 250,000 cbm. the upcoming years even more visible. Despite the The terminal will be fully operational in 2010. global impact of the crisis, Indonesia, Vietnam, Malaysia, – At the terminal in Zhangjiagang, China, capacity is being India and China performed well. Throughout 2009, this expanded by 75,300 cbm, to be commissioned in the first translated into continued growth for the Asia division, quarter of 2010. By mid-2010, another 102,000 cbm will with throughputs remaining high, in part due to Vopak’s be added at this terminal. Additional storage capacity robust client portfolio. As a result, the operating was also commissioned in Caojing (6,500 cbm), whilst in profit increased with 33.5% to EUR 127.5 million total 39,200 cbm is under construction in Ningbo (2008: EUR 95.5 million). The capacity expansions in (5,500 cbm), Lanshan (3,700 cbm) and Caojing Penjuru and Banyan, Singapore, were commissioned (30,000 cbm) which will become available in 2010.” ahead of schedule. Increasing consumption in Asia offers Vopak a splendid perspective.” Study to develop terminal in Malaysia “Together with the Dialog Group Berhad, a Malaysian Increasing import flows drive Chinese demand for entity, a study has been initiated into the feasibility of an tank storage independent oil-storage terminal in southern Malaysia. “The tank storage sector is developing strongly in China, Once the study has been satisfactorily completed, due to the increasing demand for storage. On the one hand, construction of a terminal with a storage capacity of there are sufficient financing opportunities. On the other, several millions of cubic meters may start.” chemical consumption and production are growing, and trading companies are actively keeping products on stock, Safety and sustainability anticipating demand to increase even further. In part due to “The overall improvement of safety indicators has shown the increasing import flows of oil products and chemicals an uninterrupted upward trend over the past years. such as methanol, demand for tank storage increased in Thanks to the appointment of several safety managers 2009 and much storage capacity was added in Asia.” and the approach based on local projects, step-by-step improvements are still being achieved, based on the Capacity expansion throughout the region strong awareness that efforts in the fields of safety and “Approximately 595,000 cbm of new capacity was sustainability will never cease. Constant alertness and commissioned in Asia. The following expansions were ongoing improvements will continue to require everybody’s commissioned. effort and investment. Last year’s highly regrettable fatal – 392,000 cbm in Banyan and 65,000 cbm in Penjuru, accident of a subcontractor in Jakarta has yet again made both in Singapore. this painfully clear. The sustainability theme is being placed – In Pakistan, Engro Vopak added 13,400 cbm for ethylene on the agenda with increasing emphasis in China as well, storage. supported by the government with appropriate legislation – In Sydney, Australia, capacity was expanded by and regulations. Vopak welcomes this development, as it is 78,100 cbm. in line with the high standards the company sets for itself.” – The new capacity (40,000 cbm) for chemical products in Vietnam was commissioned in June 2009. With a storage Focused attention devoted to operational efficiency capacity of 48,200 cbm, this modernized terminal is the “Vopak spent a great deal of focused attention on largest independent chemical storage terminal in Vietnam. operational efficiency. Various programs were adequately – In Jakarta, Indonesia, construction of the first phase of rolled out and received with enthusiasm. The Lean based – Royal Vopak 48 Annual Report 2009

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